Computing the full cost of ending inventory

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Reference no: EM1333812

a. Compute the full cost of the ending inventory using net realizable value to allocate joint cost.

b. If selling prices at tthe split-off point (before further processing) are $35 an $1 per pound of X and V, respectively, what should the firm do regarding further processing? Show calculations.

c. Analyze WWWeb's current policy of how the three divisions are charged for IT cost and whether WWWeb's should acquire the additional capacity.

d. Should WWWeb's change its policy of how it charges IT cost to the divisions? If so, what changes would you recommend?

Should management sell the lead division to the foreign company? Present an analysis supporting your conclusions.

Reference no: EM1333812

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