Candra GmbH obtains two products from a common input, Crude Oil. Joint processing costs up to the split-off point total $66,400 per year. Candra allocates these costs to the joint products on the basis of their total sales values at the split-off point. Each product may be sold at the split-off point or processed further. Data concerning these products appear below: Light Crude Oil Heavy Crude Oil Allocated joint processing costs $36,700 $29,700 Sales value at split-off point $43,306 $35,046 Costs of further processing $32,500 $35,300 Sales Value after further processing $75,475 $70,941 What is the net monetary advantage in dollars of processing Light Crude Oil beyond the split-off point into gasoline? Do not include a $. Enter a net disadvantage as a negative.

Candra GmbH obtains two products from a common input, Crude Oil. Joint processing costs up to the split-off point total $66,400 per year. Candra allocates these costs to the joint products on the basis of their total sales values at the split-off point. Each product may be sold at the split-off point or processed further. Data concerning these products appear below: Light Crude Oil Heavy Crude Oil Allocated joint processing costs $36,700 $29,700 Sales value at split-off point $43,306 $35,046 Costs of further processing $32,500 $35,300 Sales Value after further processing $75,475 $70,941 What is the net monetary advantage in dollars of processing Light Crude Oil beyond the split-off point into gasoline? Do not include a $. Enter a net disadvantage as a negative.

Principles of Cost Accounting

17th Edition

ISBN:9781305087408

Author:Edward J. Vanderbeck, Maria R. Mitchell

Publisher:Edward J. Vanderbeck, Maria R. Mitchell

Chapter6: Process Cost Accounting—additional Procedures; Accounting For Joint Products And By-products

Section: Chapter Questions

Problem 13P: Venezuela Oil Inc. transports crude oil to its refinery where it is processed into main products...

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Icy Company makes two products from a common input. Joint processing costs up to the split-off point total $42,000 a year. The company allocates these costs to the joint products on the basis of their total sales values at the split-off point. Each product may be sold at the split-off point or processed further. Data concerning these products appear below: Product X Product Y Total Allocated joint processing costs 22400 19600 42000 Sales value at split-off point 32,000 28,000 60,000 Costs of further processing 11600 25,300 36,900 Sales value after further processing 40,800 54,200 95,000 Required:a) What is the net monetary advantage (disadvantage) of processing Product X beyond the split-off point? b) What is the net monetary advantage (disadvantage) of processing Product Y beyond the split-off point? c) What is the minimum amount the company should accept for Product X if it is to be sold at the split-off point?d) What is the minimum amount the company…
Ibsen Company makes two products from a common input. Joint processing costs up to the split-off point total $51,000 a year. The company allocates these costs to the joint products on the basis of their total sales values at the split-off point. Each product may be sold at the split-off point or processed further. Data concerning these products appear below: Allocated joint processing costs Sales value at split-off point Costs of further processing Sales value after further processing Product X $ 20,400 $ 20,000 $ 23,300 $ 38,800 > Answer is complete but not entirely correct. a. Financial disadvantage b. Financial advantage c. Minimum acceptable amount d. Minimum acceptable amount Required: a. What is financial advantage (disadvantage) of processing Product X beyond the split-off point? (Negative amount should be indicated by a minus sign.) b. What is financial advantage (disadvantage) of processing Product Y beyond the split-off point? c. What is the minimum amount the company should…
Mitchener Corp. manufactures three products from a common input in a joint processing operation. Joint processing costs up to the split-off point total $440,000 per year. The company allocates these costs to the joint products on the basis of their total sales value at the split-off point. Each product may be sold at the split-off point or processed further. The additional processing costs and sales value after further processing for each product (on an annual basis) are: Product Sales Value at Split-Off Further Processing Costs Sales Value After Further Processing M $110,000 $ 50,000 $175,000 N 170,000 75,000 235,000 P 160,000 45,000 215,000 The "Further Processing Costs" consist of variable and avoidable fixed costs.INSTRUCTIONS Determine which product or products should be sold at the split-off point, and which product or products should be…
Ibsen Company makes two products from a common input. Joint processing costs up to the split-off point total $45,500 a year. The company allocates these costs to the joint products on the basis of their total sales values at the split-off point. Each product may be sold at the split-off point or processed further. Data concerning these products appear below: Product X Product Y Total Allocated joint processing costs $27,300 $ 18,200 $ 45,500 Sales value at split-off point $ 30,000 $20,000 $50,000 Costs of further processing $ 24,200 $ 18,500 $ 42,700 Sales value after further processing $ 47,800 $58,300 $ 106,100 Required: a. What is financial advantage (disadvantage) of processing Product X beyond the split-off point? (Negative amount should be indicated by a minus sign.) b. What is financial advantage (disadvantage) of processing Product Y beyond the split-off point? c. What is the minimum amount the company should accept for Product X if it is to be sold at the split-off point? d.…
Dock Corporation makes two products from a common input. Joint processing costs up to the split-off point total $33,600 a year. The company allocates these costs to the joint products on the basis of their total sales values at the split-off point. Each product may be Isold at the split-off point or processed further. Data concerning these products appear below: Allocated joint processing costs Sales value at split-off point Product X Product Y Total $ 16,800 $16,800 $33,600 $24,000 $24,000 $ 48,000 $33,700 Costs of further processing $ 15,000 $18,700 Sales value after further processing $35,500 $ 45,100 $80,600 What is the financial advantage (disadvantage) for the company of processing Product X beyond the split-off point? O $20,500 ($3,500) $3,700 $27,700
Dorsey Company manufactures three products from a common input in a joint processing operation. Joint processing costs up to the split-off point total $370,000 per quarter. For financial reporting purposes, the company allocates these costs to the joint products on the basis of their relative sales value at the split-off point. Unit selling prices and total output at the split-off point are as follows: Product Selling Price A B с Product A $ 24.00 per pound $ 18.00 per pound $ 30.00 per gallon Each product can be processed further after the split-off point. Additional processing requires no special facilities. The additional processing costs (per quarter) and unit selling prices after further processing are given below: B C Additional Processing Costs $ 81,150 $ 117,125 $ 52,900 Quarterly Output 13,800 pounds 21,500 pounds 5,000 gallons Required: 1. What is the financial advantage (disadvantage) of further processing each of the three products beyond the split-off point? 2. Based on…
In a joint processing operation, Nolen Company manufactures three grades of sugar from a common input, sugar cane. Joint processing costs up to the split-off point total $41,800 per year. The company allocates these costs to the joint products on the basis of their total sales value at the split-off point. These sales values are as follows: raw sugar, $21,000; brown sugar, $21,000; and white sugar, $23,100. Each product may be sold at the split-off point or processed further. Additional processing requires no special facilities. The additional processing costs and the sales value after further processing for each product (on an annual basis) are shown below: Product Raw sugar Brown sugar White sugar Additional Processing Costs $ 21,200 $ 14,600 $ 5,300 Sales Value $40,500 Incremental profit (loss) $37,300 $44,400 Required: a. Compute the Incremental profit (loss) for each product. (Loss amounts should be indicated by a minus sign.) Raw Sugar Brown Sugar White Sugar
In a joint processing operation, Nolen Company manufactures three grades of sugar from a common input, sugar cane. Joint processing costs up to the split-off point total $40,400 per year. The company allocates these costs to the joint products on the basis of their total sales value at the split-off point. These sales values are as follows: raw sugar, $20,900; brown sugar, $20,900; and white sugar, $23,200. Each product may be sold at the split-off point or processed further. Additional processing requires no special facilities. The additional processing costs and the sales value after further processing for each product (on an annual basis) are shown below: Product Raw sugar Brown sugar White sugar Incremental profit (loss) Required: a. Compute the Incremental profit (loss) for each product. (Loss amounts should be indicated by a minus sign.) ✔Raw sugar Additional Processing Costs $ 20,400 $ 13,700 $ 5,500 Brown sugar b. Which product or products should be sold at the split-off point?…
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Dorsey Company manufactures three products from a common input in a joint processing operation. Joint processing costs up to the split-off point total $330,000 per quarter. For financial reporting purposes, the company allocates these costs to the joint products based on their relative sales value at the split-off point. Unit selling prices and total output at the split-off point are as follows: Product A B с Selling Price $16.00 per pound $ 10.00 per pound $22.00 per gallon Product A B C Each product can be processed further after the split-off point. Additional processing requires no special facilities. The additional processing costs (per quarter) and unit selling prices after further processing are given below: Additional Processing Costs $ 61,390 $ 87,645 $ 35,300 Quarterly Output 12,200 pounds 19,100 pounds 3,400 gallons Required 1 Required: 1. What is the financial advantage (disadvantage) of further processing each of the three products beyond the split-off point? 2. Based on…
Dorsey Company manufactures three products from a common input in a joint processing operation. Joint processing costs up to the split-off point total $385,000 per quarter. For financial reporting purposes, the company allocates these costs to the joint products on the basis of their relative sales value at the split-off point. Unit selling prices and total output at the split-off point are as follows: Product A B с Product A B с Selling Price $27.00 per pound $21.00 per pound $ 33.00 per gallon Each product can be processed further after the split-off point. Additional processing requires no special facilities. The additional processing costs (per quarter) and unit selling prices after further processing are given below: Additional Processing Costs $ 89,220 $ 129,170 $ 60,160 Quarterly Output 14,400 pounds 22,400 pounds 5,600 gallons Required 1 Required: 1. What is the financial advantage (disadvantage) of further processing each of the three products beyond the split-off point? 2.…
A. ALENBONG Company produces line of different products which comes from the COMMON INPUT in a joint processing operation. The company incurs joint processing that costs of P200,000 per year up to the split off point. These joint costs are distributed to the three (3) products based on their total sales value at the split off point: P100,000 for product A., P180,000 for product B, and P120,000 for products C. Product A, B, C may be sold at split -off point or may be processed further. Xt costs of further processing the products and their sales value thereafter are shown below: PRODUCT FURTHER PROCESSING COSTS SALES VALUE P 160,000 P 70,000 80,000 24,000 А. В. 300,000 C. 150,000 REQUIRED: From the above data show your computations which product or products should be sold at the split off point, and which should be processed further

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	Light Crude Oil	Heavy Crude Oil
Allocated joint processing costs	$36,700	$29,700
Sales value at split-off point	$43,306	$35,046
Costs of further processing	$32,500	$35,300
Sales Value after further processing	$75,475	$70,941