User Account

All Pages

What is financial advantage of processing product x

Assignment Help Managerial Accounting
Reference no: EM132526528

Ibsen Company makes two products from a common input. Joint processing costs up to the split-off point total $47,500 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               $28,500                $19,000                     $47,500

Sales value at split-off point                     $30,000              $20,000                     $50,000

Costs of further processing                         $24,600               $18,900                    $43,500

Sales value after further processing                $48,600                $59,100                    $107,700

Required:

Question a. What is financial advantage (disadvantage) of processing Product X beyond the split-off point? (Negative amount should be indicated by a minus sign.)

Question b. What is financial advantage (disadvantage) of processing Product Y beyond the split-off point?

Question c. What is the minimum amount the company should accept for Product X if it is to be sold at the split-off point?

Question d. What is the minimum amount the company should accept for Product Y if it is to be sold at the split-off point?

Reference no: EM132526528

Questions Cloud

Determine the missing amounts for contribution margin : Determine the missing amounts for contribution margin. Unit Selling Price Unit Variable Cost Contribution Margin per Unit Contribution Margin Ratio
Demonstrate the variable and fixed cost elements : Demonstrate the variable and fixed cost elements using the high low method. Westerville Corp. has collected the following data concerning
Discuss between the two types of cost accounting systems : What type of industry is likely to use a job order cost system? Give some examples and what type of industry is likely to use a process cost system?
Determine the variable and fixed cost elements : Compute the variable and fixed cost elements using the high low method. Spitz Company accumulates the data concerning a mixed cost.
What is financial advantage of processing product x : What is financial advantage (disadvantage) of processing Product X beyond the split-off point? (Negative amount should be indicated by a minus sign.)
What is the best costing system could use : What is the best costing system they could use? Should they use actual or budgeted costs? Midwest Industries Ltd. produces several custom-made attachments
Write a summary calculation for job : Write a summary calculation for job B115 with job costing calculations. Direct Manufacturing Labour $15,.000 Total Budgeted Manufacturing Overhead Costs
Compute the variable overhead rate variances for lubricants : Compute the variable overhead rate variances for lubricants and for supplies. (Indicate the effect of each variance by selecting "F" for favorable)
Compute the materials quantity variance for april : Compute the variable overhead efficiency variance for April. Compute the materials quantity variance for April. Compute the materials price variance.

Reviews

Write a Review

Managerial Accounting Questions & Answers

  Discuss manager incentives for manipulating allocation

Discuss manager incentives for manipulating allocation methods to influence performance measures. evaluating the performance of the Classic and New Age division

  Prepare worksheet outlining transactions of high energt ltd

Accounting for Management M 5011 Problem Solving Assessment. Prepare a worksheet outlining the transactions of HIGH Energy Ltd in February and March 2016. Ignore tax

  How much could advertising be increased with profits

By how much could advertising be increased with profits remaining unchanged? Do not prepare the income statement; use the incremental analysis approach.

  What is the cost per bottle of hi-voltage

What is the cost per bottle of Hi-Voltage? What is the cost per bottle of EasySlim? Hint: The answer should draw on the total cost for each product line

  What is the return shareholders are expecting

Determine the equivalent taxable yield. (Round your answer to 2 decimal places and What is the return shareholders are expecting?

  Determine and Calculate Watervans economic value added

Determine Calculate Watervan's economic value added (EVA). (Do not round intermediate calculations. Enter your answer in millions rounded to 2 decimal places.)

  Determine the inns break-even point

Determine the inn's break-even point in number of rented rooms per month and dollars and calculate the break-even point in (1) dollars and (2) number of fares.

  Identify the costs as variable-fixed or mixed

Fee paid to security company for monthly service - Identify the costs as variable (V), fixed (F), or mixed (M).

  The major task that you need to complete in this subject is

the major task that you need to complete in this subject is the preparation of a report which provides an assessment of

  Prepare a single journal entry that summarizes

For each of the five independent situations below, prepare a single journal entry that summarizes the recording and payment of income taxes in order to determine the amount of cash paid for income taxes and explain the change (if any) in each of the ..

  Create journal entries for each transaction

Create journal entries for each transaction. Using the journal entries as a guide, show whether every transaction would be handled as revenue or an expense using both the cash and accrual by completing the table provided.

  What volume of sales does the firm break even

what volume of sales does the firm break even - What is the break even quantity for a price of $405 - When quoting this new price, SG&A should be ignored

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd