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Solex Company manufactures three products from a common input in a joint processing operation

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Please see attached document.;Solex Company manufactures three products from a common input in a joint processing operation. Joint processing costs up to the split-off point total $100,000 per year. The company allocates these costs to the joint products on the basis of their total sales value of the split-off point. These sales values are as follows: Product X, $50,000, product Y, $90,000, and product Z, $60,000.;Each product may be sold at the split-off point or processes further. Additional processing for each product (on an annual basis) are shown below;Product Additional Processing Costs Sales Value;X $35,000 $80,000;Y $40,000 $150,000;Z $12,000 $75,000;Which product or products should be sold at the split-off point, and which product or products should be processed further? Show computations.;Solex Company manufactures three products from a common input in a joint;processing operation. Joint processing costs up to the split-off point;total $100,000 per year. The company allocates these costs to the joint;products on the basis of their total sales value of the split-off point.;These sales values are as follows: Product X, $50,000, product Y;$90,000, and product Z, $60,000.;Each product may be sold at the split-off point or processes further.;Additional processing for each product (on an annual basis) are shown;below;Product Additional Processing Costs Sales Value;X $35,000 $80,000;Y $40,000 $150,000;Z $12,000 $75,000;Which product or products should be sold at the split-off point, and;which product or products should be processed further? Show;computations.

 

Paper#24929 | Written in 18-Jul-2015

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