What were the average unit costs of curve

Reference no: EM132853780

Curve and Slid

The Matthewson Corporation manufactures two products, Curv and Slid Under present operations, raw materials are processed in Department A The two products are separated at the end of this processing.

For every unit of Curv, three units of Slid are obtained. Curv is then finished in Department B and Slid is finished in Department C.

Actual operating data for the current year were as follows:

Units produced: Curv: Slid:	A 25,000 75,000	B 25,000	C 75,000
Costs incurred:
Direct Materials	$ 150,000
Direct Labour	80,000	$ 30,000	$ 40,000
Variable MOH	20,000	10,000	20,000
Fixed MOH	90,000	25,000	35,000

At present, Curve is sold for $10 and Slid for $5 per unit. Both products are also readily marketable at the completion of processing in Dept A: Curve for $8 per unit and Slid for $3 per unit.

Required:

1) Use the value at split-off to allocate joint costs.

2) Under an absorption costing system, what were the average unit costs of Curve and Slid during the current year? Showw appropriate supporting calculations.

3) Should Curve and Slid be further processed?

Reference no: EM132853780

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