A company manufactures three products using the same production process. The costs incurred up to the split-off point are $208,400. These costs are allocated to the products on the basis of their sales value at the split-off point. The number of units produced, the selling prices per unit of the three products at the split-off point and after further processing, and the additional processing costs are as follows. Product D E F (b1) Number of Units Produced 4,350 5,530 1,900 Selling Price at Split-Off $10.10 11.10 19.20 Selling Price after Processing $15.40 16.40 23.00 Additional Processing Costs $16,995 21,509 10,790 Determine the incremental profit (loss) of each product(s). (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).)

Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter7: Allocating Costs Of Support Departments And Joint Products
Section: Chapter Questions
Problem 10CE: A company manufactures three products, L-Ten, Triol, and Pioze, from a joint process. Each...
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A company manufactures three products using the same production process. The costs incurred up to the split-off point
are $208,400. These costs are allocated to the products on the basis of their sales value at the split-off point. The
number of units produced, the selling prices per unit of the three products at the split-off point and after further
processing, and the additional processing costs are as follows.
Product
D
E
Your answer is partially correct.
F
(b1)
Number of
Units
Produced
Incremental
profit (loss)
4,350
5,530
1,900
Product D
Selling Price
at Split-Off
$10.10
$
11.10
19.20
Selling Price
after
Processing
$15.40
16.40
23.00
Determine the incremental profit (loss) of each product(s). (Enter negative amounts using either a negative
sign preceding the number e.g. -45 or parentheses e.g. (45).)
Product E
Additional
Processing Costs
$
$16,995
21,509
10,790
Product F
$
Transcribed Image Text:Current Attempt in Progress A company manufactures three products using the same production process. The costs incurred up to the split-off point are $208,400. These costs are allocated to the products on the basis of their sales value at the split-off point. The number of units produced, the selling prices per unit of the three products at the split-off point and after further processing, and the additional processing costs are as follows. Product D E Your answer is partially correct. F (b1) Number of Units Produced Incremental profit (loss) 4,350 5,530 1,900 Product D Selling Price at Split-Off $10.10 $ 11.10 19.20 Selling Price after Processing $15.40 16.40 23.00 Determine the incremental profit (loss) of each product(s). (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) Product E Additional Processing Costs $ $16,995 21,509 10,790 Product F $
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