What is the minimum amount the company should accept

Assignment Help Managerial Accounting
Reference no: EM133027330

Question - 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

$22,400

$19,600

$42,000

Sales value at split-off joint

$32,000

$28,000

$60,000

Costs of further processing

$11,600

$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 should accept for Product Y if it is to be sold at the split-off point?

Reference no: EM133027330

Questions Cloud

Is it profitable to replace the year-old machine : Your company's tax rate is 20%, and the opportunity cost of capital for this type of equipment is 12%. Is it profitable to replace the year-old machine
Why is staffing considered an input but not money : Why is staffing considered an input but not money
What is the total payment for the fourth year : Ms Maisam is a businesswoman, and she takes out R.O 20,000, five-year loan at 10%. What is the total payment for the fourth year
Explain the type of hazard : 1. Identify and Explain the type of hazard is Joan dealing with.
What is the minimum amount the company should accept : Joint processing costs up to the split-off point total $42,000 a year. What is the minimum amount the company should accept for Product Y if it is to be sold
Employees balance work-life and work-family : Please see below company and then search and review any five of the companies. What practices do they use to help their employees balance work-life and work-fam
Formulate a compensation strategy for firm : The Fit Stop Ltd. is a brand-new firm that will open its doors exactly four months from today. Its business objective is to sell all types of training
Calculate the IRR : Question - Uluna has the following cash flows: Calculate the IRR? Uluna is very confused. Explain what is the problem
World most sustainable retailer case study : Marks & Spencer: Towards Becoming the World's Most Sustainable Retailer case study in Chapter 4 of your textbook.

Reviews

Write a Review

Managerial Accounting Questions & Answers

  Solve the profit margin and rate of return on investment

Solve the profit margin, investment turnover, and rate of return on investment using the DuPont formula for the company in 2019 and 2020.

  What is the maximum contract cost

Vacant facilities could be rented out to earn $3000 per month of rental income. What is the maximum contract cost that Alieia should pay for outsourcing?

  Discuss the components of the fraud triangle

Discuss the components of the fraud triangle that affected Miss Alvarez's behavior. Did miss Alvarez violate any standards of ethical practice. If so which ones

  Calculate the revised budgeted roa

As a result of this investment, the asset base at the end of the year increases by 9 million GBP. Calculate the revised budgeted ROA

  What will be real effect on profit if the order is accepted

The $65 of fixed overhead is allocated as $1.26 per direct labor dollar. What will be the real effect on profit if the order is accepted

  Compare the managerial accounting and financial accounting

Compare and Contrast Managerial Accounting and Financial Accounting. What you believe to be your current knowledge level of this course topic?

  Calculate the actual amount of contribution margin

Calculate the actual amount of contribution margin (sales price less variable labor cost) that K&J made, on average, on each Web site in the past month.

  Identify each transaction by number

Record the Journalize the business transactions in general journal form. Identify each transaction by number. You may omit explanations of the transaction

  Write the journal entry to record the transaction

$45,250 were shipped to Japan as Job Order Shipment M-X17 on February 15, 2020. Ignoring sales tax, write the journal entry to record this transaction

  Find the total interest paid over the life of the loan

Find the total interest paid over the life of the loan. Sean Lee purchases $30,000 worth of supplies for his restaurant by making a $4,000 down payment

  What principle is being followed

Wilson Company's managers investigate departures from the budget that appear to be significant. What principle is being followed?

  Demonstrate what is the direct materials quantity variance

Demonstrate What is the direct materials quantity variance? Yama Industiers has collected the data for its Thunderbolt line of products

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!

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