Question

Exercise 21.10 Joint Products (LO21-1, LO21-2, LO21-3, LO21-4) Treadwell Pharmaceuticals produces two medications in a joint...

Exercise 21.10 Joint Products (LO21-1, LO21-2, LO21-3, LO21-4)

Treadwell Pharmaceuticals produces two medications in a joint process: Amoxiphore and Benidrate. With each production run, Treadwell incurs $4,000 in common costs up to the split-off point. Amoxiphore can be sold for $2,700 at the split-off point or be processed further at a cost of $1,600, at which time it can be sold for $4,200. However, if Amoxiphore is sold at the split-off point, its side effects include nausea and headaches. If it is processed further, these side effects are diminished. Demand for Amoxiphore far exceeds Treadwell's production capacity. Benidrate can be sold for $2,400 at the split-off point or be processed further at a cost of $3,700, at which time it can be sold for $6,000.

a-1. Calculate the net proceeds for the two products if processed further.

a-2. Determine which product is more profitable to process beyond the split-off point.

Business   Accounting   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Bowen Company produces products P, Q, and R from a joint production process. Each product may...
Bowen Company produces products P, Q, and R from a joint production process. Each product may be sold at the split-off point or be processed further. Joint production costs of $81,000 per year are allocated to the products based on the relative number of units produced. Data for Bowen's operations for the current year are as follows:            Product Units Produced Allocated Joint Sales Value Sales Value at Split-off P 4,000 $28,000 $38,000 Q 7,000 49,000 47,000 R 2,000 14,000...
Two products, QI and VH, emerge from a joint process. Product QI has been allocated $20,300...
Two products, QI and VH, emerge from a joint process. Product QI has been allocated $20,300 of the total joint costs of $41,000. A total of 2,700 units of product QI are produced from the joint process. Product QI can be sold at the split-off point for $12 per unit, or it can be processed further for an additional total cost of $10,700 and then sold for $14 per unit. If product QI is processed further and sold, what would...
Part A: Marin Products produces three products — DBB-1, DBB-2, and DBB-3 from a joint process....
Part A: Marin Products produces three products — DBB-1, DBB-2, and DBB-3 from a joint process. Each product may be sold at the split-off point or processed further. Additional processing requires no special facilities, and production costs of further processing are entirely variable and traceable to the products involved. Key information about Marin's production, sales, and costs follows. DBB-1 DBB-2 DBB-3 Total Units Sold 14,000 22,000 30,000 66,000 Price (after addt’l processing) $ 85 $ 70 $ 95 Separable Processing...
Collie Company has a joint process that produces three products: R, D and A. Each product...
Collie Company has a joint process that produces three products: R, D and A. Each product may be sold at split-off or processed further and then sold. Joint processing costs for a year amount to $300,000. Other relevant data are as follows: Product Sales Value Costs after Sales Value at Split-Off Split-Off at Completion $ $ $ R 120,000 260,000 420,000 D 80,000 140,000 190,000 A 150,000 190,000 350,000 Required: Determine total net income if all products are sold at...
Eunice Company produces two products from a joint process. Joint costs are $70,000 for one batch,...
Eunice Company produces two products from a joint process. Joint costs are $70,000 for one batch, which yields 1,000 liters of germain and 4,000 liters of hastain. Germain can be sold at the split-off point for $24 or be processed further, into geraiten, at a manufacturing cost of $4,100 (for the 1,000 liters) and sold for $33 per liter. If geraiten is sold, additional distribution costs of $0.80 per liter and sales commissions of 10% of sales will be incurred....
Two products, QI and VH, emerge from a joint process. Product QI has been allocated $31,300...
Two products, QI and VH, emerge from a joint process. Product QI has been allocated $31,300 of the total joint costs of $52,000. A total of 2,600 units of product QI are produced from the joint process. Product QI can be sold at the split-off point for $15 per unit, or it can be processed further for an additional total cost of $10,600 and then sold for $17 per unit. If product QI is processed further and sold, what would...
Tom makes products Alpha and Delta from a joint process. Alpha has been allocated $7,500 of...
Tom makes products Alpha and Delta from a joint process. Alpha has been allocated $7,500 of total joint costs of $30,000 for the 1,500 units produced. Alpha can be sold at the splitoff point for $4 per unit, or it can be processed further with additional costs of $2,000 and sold for $7 per unit. If Alpha is processed further and sold, instead of being sold at the split-off point, how would operating income be affected? In other words, which...
Marin Products produces three products — DBB-1, DBB-2, and DBB-3 from a joint process. Each product...
Marin Products produces three products — DBB-1, DBB-2, and DBB-3 from a joint process. Each product may be sold at the split-off point or processed further. Additional processing requires no special facilities, and production costs of further processing are entirely variable and traceable to the products involved. Key information about Marin's production, sales, and costs follows. DBB-1 DBB-2 DBB-3 Total Units Sold 18,000 28,000 40,000 86,000 Price (after addt’l processing) $ 55 $ 40 $ 65 Separable Processing cost $...
Two products, QI and VH, emerge from a joint process. Product QI has been allocated $33,300...
Two products, QI and VH, emerge from a joint process. Product QI has been allocated $33,300 of the total joint costs of $54,000. A total of 2,800 units of product QI are produced from the joint process. Product QI can be sold at the split-off point for $10 per unit, or it can be processed further for an additional total cost of $10,800 and then sold for $12 per unit. If product QI is processed further and sold, what would...
Dorsey Company manufactures three products from a common input in a joint processing operation. Joint processing...
Dorsey Company manufactures three products from a common input in a joint processing operation. Joint processing costs up to the split-off point total $350,000 per quarter. For financial reporting purposes, the company allocates these costs to the joint products on the basis of their relative sales value at the split-off point. Unit selling prices and total output at the split-off point are as follows: Product Selling Price Quarterly Output A $ 20.00 per pound 13,000 pounds B $ 14.00 per...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT