2006 Units produced Per unit sales volue at split-off Added processing costs per unit Per unit sales value if processed further The cost of the joint raw material input is $92000 Which of the products should be processed beyond the split off point? Product 2 A) 8) () orporation produces products X Y and Z from a single raw material input in a joint production process. Budeted data for Product X 2,500 $23.00 $ 2.00 Product V 3,000 $ 24.00 $ 4.00 $ 27.00 $ 27.00 0) Product X yes yes no no Mpe Choce Product V yes no yes Product Z 4,000 $ 25.00 $4.00 $ 32.00 no ext mor follows
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- Hart Manufacturing makes three products. Each product requires manufacturing operations in three departments: A, B, and C. The labor-hour requirements, by department, are as follows: During the next production period the labor-hours available are 450 in department A, 350 in department B, and 50 in department C. The profit contributions per unit are 25 for product 1, 28 for product 2, and 30 for product 3. a. Formulate a linear programming model for maximizing total profit contribution. b. Solve the linear program formulated in part (a). How much of each product should be produced, and what is the projected total profit contribution? c. After evaluating the solution obtained in part (b), one of the production supervisors noted that production setup costs had not been taken into account. She noted that setup costs are 400 for product 1, 550 for product 2, and 600 for product 3. If the solution developed in part (b) is to be used, what is the total profit contribution after taking into account the setup costs? d. Management realized that the optimal product mix, taking setup costs into account, might be different from the one recommended in part (b). Formulate a mixed-integer linear program that takes setup costs provided in part (c) into account. Management also stated that we should not consider making more than 175 units of product 1, 150 units of product 2, or 140 units of product 3. e. Solve the mixed-integer linear program formulated in part (d). How much of each product should be produced and what is the projected total profit contribution? Compare this profit contribution to that obtained in part (c).Product X is obtained after it passes through three distinct processes. The following cost information is available for the operation. Total Process 1 Process 2 Process 3 Direct materials added $15,084 $5,200 $3,960 $5,924 Direct wages 18,000 4,000 6,000 8,000 Production overhead 18,000 1,000 units @ $6.00 per unit were introduced in Process 1. Production overhead is to be distributed as a percentage of direct wages. Actual Output Units Normal Loss Scrap Value per Unit Process 1 950 5% $4.00 Process 2 840 10% $8.00 Process 3 750 15% $10.00 Prepare the process accounts and post your responses in the Discussion Forum.Sharpest Ltd produces three products (A, B and C) and one by-product (D) in its joint process. The following information relates to production at the end of the current month: Product Units produced Sales value at split off Further processing costs Final sales value A 13000 R18 R24 R3 B 18000 R28 N/A R28 C 22000 R26 N/A R26 D 4500 R1.5 R1 R4 If the total cost of the joint process was R286000 and the sales value at split off method is used by Sharpest Ltd to apportion the costs, calculate the total costs attributable to product A. a. R48675.57 b. R50825.14 c. R50283.21 d. R47268.35 e. R55146.40
- Handerson Corporation makes a product with the following standard costs: Standard Quantity Standard Price or or Hours 8.5 kilos Rate Direct materials $46.00 r kilo $ 20.00 per hour $ 6.00 per hour Direct labor 0.4 hours Variable overhead 0.4 hours The company reported the following results concerning this product in August. Actual output 3,200 units 29,030 kilos 31,600 kilos 1,160 hours $ 195,920 $ 22,736 $ 7,540 Raw materials used in production Purchases of raw materials Actual direct labor-hours Actual cost of raw materials purchases Actual direct labor cost Actual variable overhead cost The company applies variable overhead on the basis of direct labor-hours. The direct materials purchases variance is cor purchased. The labor efficiency variance for August is:Handerson Corporation makes a product with the following standard costs: Standard Quantity or Hours Standard Price or Rate Direct materials 8.5 kilos $ 6.00 per kilo Direct labor 0.4 hours $ 20.00 per hour Variable overhead 0.4 hours $ 6.00 per hour The company reported the following results concerning this product in August. Actual output 3,200 units Raw materials used in production 29,030 kilos Purchases of raw materials 31,600 kilos Actual direct labor-hours 1,160 hours Actual cost of raw materials purchases $ 195,920 Actual direct labor cost $ 22,736 Actual variable overhead cost $ 7,540 The company applies variable overhead on the basis of direct labor-hours. The direct materials purchases variance is computed when the materials are purchased. The materials price variance for August is: Multiple Choice $5,440 F $6,320 F $5,440 U $6,320 UA company manufactures two joint products and one by-product in a single process. Data for November are as follows. $ Raw material input 216,000 Conversion costs 72,000 There were no inventories at the beginning or end of the period. Output Sales price Units $ per unit Joint product E 21,000 15 Joint product Q 18,000 10 By-product X 2,000 2 By-product sales revenue is credited to the process account. Joint costs are apportioned on a sales value basis. What were the full production costs of product Q in November (to the nearest $)? A $102,445 B $103,273 C $104,727 D $180,727
- Chem Co manufacture a single product, product W, and have provided you with the following information which relates to the period which has just ended.Standard cost per unit of product WMaterials:Material F: 15kgx$4/kg= $60Material G: 12kgx$3/kg=$ 36Material H: 8kgx $6/kg=$ 48Labour:Department P: 4 hours x $10 per hour = $40Department Q: 2 hours x $6 per hour = $12Budgeted sales for the period are 4,500 units at $260 per unit. There were no budgeted opening or closing inventories of product W.The actual materials used were as follows.Materials: Material Price per kiloTotal KilosMaterial F: 59,800kg x $4.25/kg=$254,150Material G: 53,500kg x $2.80/kg= $149,800Material H: 33,300kg x $6.40/kg= $213,1204,100 units of product W were produced and sold for $1,115,800.Required(a) calculate the sales variance(b) comment on your findings to help explain what has happened to the yield variance.Benjamin CompanyBenjamin Company produces two products from a joint process: X and Z. Joint processing costs for this production cycle are $8,000. Yards Sales priceper yard atsplit-off Disposalcost per yard atsplit-off Furtherprocessingper yard Final saleprice peryard X 1,500 $6.00 $3.50 $1.00 $7.50 Z 2,200 9.00 5.00 3.00 11.25 If X and Z are processed further, no disposal costs will be incurred or such costs will be borne by the buyer. Refer to Benjamin Company. Using sales value at split-off, what amount of joint processing cost is allocated to Product X (round to the nearest dollar)? Select one: a. $2,500 b. $3,243 c. $4,000 d. $5,500The Truman Company manufactures a product in a single process. The following information is available: 2,500 kilos valued at $14.40 per kilo $8,000 $38,500 $30,500 Input Material Material Added Direct Labour Cost Incurred Manufacturing Overhead Incurred Normal Losses Scrap value of losses Completed and transferred to Finished Goods The cost per unit is: O a. $43.20 O b. $45.20 O c. $50.24 O d. $48.00 10% of input $20.00 per kilo 2,150 kilos
- 8. Calamata Corporation processes a single material into three separate products A, B, and C. During September, the joint costs of processing were $300,000. Production and sales value information for the month were as follows: Product Units Produced Final Sales Value per Unit Separable Costs A 10,000 $25 $125,000 B 15,000 30 250,000 C 12,500 24 125,000 Determine the amount of joint cost allocated to each product if the constant gross-margin percentage NRV method is used.Benjamin Signal Company produces products R, J, C from a joint process. Each product may be sold at the split off point or be processed further. Joint production costs of $92,000 are allocated to the products based on the relative number of units produced. Data for the current year operations follow: Product Units Allocated Joint Sales Value at Produced Production Spit off Cost $ 32,000 $ 40,000 $ 20,000 $ 76,000 $ 71,000 $ 48,000 R 8,000 10,000 5,000 Product R can be processed beyond the split off point for an additional cost of $26,000 and can then be sold for $105,000. Product J can be processed beyond the split off point for an additional $38,000 and then sold for $117,000. Product C can be processed beyond the split off point for an additional $12,000 and then sold for $57,000. Required: Which products should be processed beyond the split off point? Show your calculations.PHYSICAL UNITS METHODAlomar Company manufactures four products from a joint production process: andol,incol, ordol, and exsol. The joint costs for one batch are as follows:Direct materials $56,300Direct labor 28,000Overhead 15,700At the split-off point, a batch yields 1,000 andol, 1,500 incol, 2,500 ordol, and3,000 exsol. All products are sold at the split-off point: andol sells for $20 per unit; incol sells for $75 per unit; ordol sells for $64 per unit, and exsol sells for $22.50 per unit. 1. Allocate the joint costs using the physical units method.2. Suppose that the products are weighted as follows:Andol 3.0Incol 2.0Ordol 0.4Exsol 1.0Allocate the joint costs using the weighted average method