Solution-Compute the net incremental revenue per kilogram

Compute the net incremental revenue per kilogram

Assignment Help Accounting Basics

Reference no: EM132716970

Question -

A. Breakfasttime Cereal Company manufactures two breakfast cereals in a joint process. Cost and quantity information is as follows:

Joint Cost	Cereal	Quantity at Split-Off Point	Sales Price per Kilogram
$30,000	Yummies	12,000 kilograms	$2.00
	Crummies	8,000 kilograms	2.50

Breakfasttime Cereal Company has an opportunity to process its Crummies further into a mulch for ornamental shrubs. The additional processing operation costs $0.50 per kilogram, and the mulch will sell for $3.50 per kilogram.

1-a Compute the net incremental revenue per kilogram if management decide to process Crummies into the mulch.

1-b. Should Breakfasttime's management decide to process Crummies into the mulch?

B. Suppose the company does process Crummies into the mulch. Use the net-realizable-value method to allocate the joint production cost between the mulch and the Yummies. (Do not round intermediate calculations.)

Reference no: EM132716970

Questions Cloud

How should hr managers use social media in recruiting : Our daily life now includes social media. According to Pew Research Center (2019), 7 out of 10 Americans have at least one social media account.

Discuss social disorganization theory and control theory : Discuss social disorganization theory and control theory. Provide an example to illustrate both theoretical perspectives.

Beginning the contingency planning process : The contingency planning process describes comprehensive procedures used by organizations to plan, detect, and respond to various situations.

Major theoretical perspectives of functionalism : Analyze the concept of family from the major theoretical perspectives of functionalism, conflict, and symbolic-interaction.

Compute the net incremental revenue per kilogram : The additional processing operation costs $0.50 per kilogram, and the mulch will sell for $3.50 per kilogram. Compute the net incremental revenue per kilogram

Find how could samsung could benefit by product pricing : Find How could Samsung could benefit by product pricing in terms of cost-plus concepts? How costs concepts could be used in the decision making?

How should society respond to the problem of poverty : How should soc iety respond to the problem of poverty? Explore the issue of responding to the problem of poverty.

Compute what is the cash flow from operating activities : Inventories increase by Rp. 100 billion and the total cost of depreciation and amortization of Rp. 10 billion, what will be the company's net profit in 2019?

What is the role of religion in conflict : What is the role of religion in conflict? What role does religion play in world affairs?

User Account

All Pages

Compute the net incremental revenue per kilogram

Reference no: EM132716970

Reference no: EM132716970

Questions Cloud

Reviews

Write a Review

Accounting Basics Questions & Answers

How much control does fed have over this longer real rate

Coures:- fundamental accounting principles

Accounting problems

Theory of interest - term structure of interest rates

Write a report on internal controls

Prepare the bank reconciliation for company

Cost-benefit analysis

Theory of interest

Liquidity and profitability

What is the expected risk premium on the portfolio

Simple interest and compound interest

Capm and venture capital

Assured A++ Grade

Academics

Major Subjects

Majors

Get In Touch

TERMS & POLICIES

HELP & SUPPORT