[The following information applies to the questions displayed below.] Biondi Industries is a manufacturer of chemicals for various purposes. One of the processes used by Biondi produces HTP-3, a chemical used in hot tubs and swimming pools; PST-4, a chemical used in pesticides; and RJ-5, a product that is sold to fertilizer manufacturers. Biondi uses the net-realizable-value method to allocate joint production costs. The ratio of output quantities to input quantities of direct material used in the joint process remains consistent from month to month. Biondi Industries uses FIFO (first-in, first-out) in valuing its finished-goods inventories. Data regarding Biondi's operations for the month of October are as follows. During this month, Biondi incurred joint production costs of $2,250,000 in the manufacture of HTP-3, PST-4, and RJ-5. Finished goods inventory in gallons (October 1) October sales in gallons October production in gallons Additional processing costs Final sales value per gallon Problem 17-29 Part 3 Req 3A RJ-5 4,100 205,000 225,000 $ 70,000 $ 5.10 $ 7.10 $ 6.10 3-a. Suppose Biondi Industries has a new opportunity to sell PST-4 at the split-off point for $4.90 per gallon. Calculate the per gallon profit (loss) of processing further PST-4. 3-b. Should the company sell PST-4 at the split-off point or continue to process this product further? Complete this question by entering your answers in the tabs below. Req 3B HTP-3 23,500 760,000 920,000 $984,000 < Req 3A PST-4 59,700 380,000 460,000 $931,000 Suppose Biondi Industries has a new opportunity to sell PST-4 at the split-off point for $4.90 per gallon. Calculate the per gallon profit (loss) of processing further PST-4. (Round your answer to 2 decimal places.) Per gallon gain of further processing PST-4 Req 3B >
[The following information applies to the questions displayed below.] Biondi Industries is a manufacturer of chemicals for various purposes. One of the processes used by Biondi produces HTP-3, a chemical used in hot tubs and swimming pools; PST-4, a chemical used in pesticides; and RJ-5, a product that is sold to fertilizer manufacturers. Biondi uses the net-realizable-value method to allocate joint production costs. The ratio of output quantities to input quantities of direct material used in the joint process remains consistent from month to month. Biondi Industries uses FIFO (first-in, first-out) in valuing its finished-goods inventories. Data regarding Biondi's operations for the month of October are as follows. During this month, Biondi incurred joint production costs of $2,250,000 in the manufacture of HTP-3, PST-4, and RJ-5. Finished goods inventory in gallons (October 1) October sales in gallons October production in gallons Additional processing costs Final sales value per gallon Problem 17-29 Part 3 Req 3A RJ-5 4,100 205,000 225,000 $ 70,000 $ 5.10 $ 7.10 $ 6.10 3-a. Suppose Biondi Industries has a new opportunity to sell PST-4 at the split-off point for $4.90 per gallon. Calculate the per gallon profit (loss) of processing further PST-4. 3-b. Should the company sell PST-4 at the split-off point or continue to process this product further? Complete this question by entering your answers in the tabs below. Req 3B HTP-3 23,500 760,000 920,000 $984,000 < Req 3A PST-4 59,700 380,000 460,000 $931,000 Suppose Biondi Industries has a new opportunity to sell PST-4 at the split-off point for $4.90 per gallon. Calculate the per gallon profit (loss) of processing further PST-4. (Round your answer to 2 decimal places.) Per gallon gain of further processing PST-4 Req 3B >
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
![[The following information applies to the questions displayed below.]
Biondi Industries is a manufacturer of chemicals for various purposes. One of the processes used by Biondi produces
HTP-3, a chemical used in hot tubs and swimming pools; PST-4, a chemical used in pesticides; and RJ-5, a product that
is sold to fertilizer manufacturers. Biondi uses the net-realizable-value method to allocate joint production costs. The ratio
of output quantities to input quantities of direct material used in the joint process remains consistent from month to month.
Biondi Industries uses FIFO (first-in, first-out) in valuing its finished-goods inventories.
Data regarding Biondi's operations for the month of October are as follows. During this month, Biondi incurred joint
production costs of $2,250,000 in the manufacture of HTP-3, PST-4, and RJ-5.
Finished goods inventory in gallons (October 1)
October sales in gallons
October production in gallons
Additional processing costs
Final sales value per gallon
Problem 17-29 Part 3
Complete this question by entering your answers in the tabs below.
Req 3A
3-a. Suppose Biondi Industries has a new opportunity to sell PST-4 at the split-off point for $4.90 per gallon. Calculate the per gallon
profit (loss) of processing further PST-4.
3-b. Should the company sell PST-4 at the split-off point or continue to process this product further?
Req 3B
HTP-3
23,500
760,000
920,000
$984,000
5.10
$
gain
< Req 3A
PST-4
59,700
380,000
460,000
$931,000
$ 7.10
Suppose Biondi Industries has a new opportunity to sell PST-4 at the split-off point for $4.90 per gallon. Calculate the per
gallon profit (loss) of processing further PST-4. (Round your answer to 2 decimal places.)
Per gallon
of further processing PST-4
RJ-5
4,100
205,000
225,000
$ 70,000
$ 6.10
Req 3B >](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F5fca61a7-5ba6-4ee8-913f-3944636f5ce1%2F8e6450c5-e854-4700-8472-c7a5954274bf%2Fpil4bo_processed.png&w=3840&q=75)
Transcribed Image Text:[The following information applies to the questions displayed below.]
Biondi Industries is a manufacturer of chemicals for various purposes. One of the processes used by Biondi produces
HTP-3, a chemical used in hot tubs and swimming pools; PST-4, a chemical used in pesticides; and RJ-5, a product that
is sold to fertilizer manufacturers. Biondi uses the net-realizable-value method to allocate joint production costs. The ratio
of output quantities to input quantities of direct material used in the joint process remains consistent from month to month.
Biondi Industries uses FIFO (first-in, first-out) in valuing its finished-goods inventories.
Data regarding Biondi's operations for the month of October are as follows. During this month, Biondi incurred joint
production costs of $2,250,000 in the manufacture of HTP-3, PST-4, and RJ-5.
Finished goods inventory in gallons (October 1)
October sales in gallons
October production in gallons
Additional processing costs
Final sales value per gallon
Problem 17-29 Part 3
Complete this question by entering your answers in the tabs below.
Req 3A
3-a. Suppose Biondi Industries has a new opportunity to sell PST-4 at the split-off point for $4.90 per gallon. Calculate the per gallon
profit (loss) of processing further PST-4.
3-b. Should the company sell PST-4 at the split-off point or continue to process this product further?
Req 3B
HTP-3
23,500
760,000
920,000
$984,000
5.10
$
gain
< Req 3A
PST-4
59,700
380,000
460,000
$931,000
$ 7.10
Suppose Biondi Industries has a new opportunity to sell PST-4 at the split-off point for $4.90 per gallon. Calculate the per
gallon profit (loss) of processing further PST-4. (Round your answer to 2 decimal places.)
Per gallon
of further processing PST-4
RJ-5
4,100
205,000
225,000
$ 70,000
$ 6.10
Req 3B >
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 6 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education