Answered

Discover the best answers at Westonci.ca, where experts share their insights and knowledge with you. Discover in-depth solutions to your questions from a wide range of experts on our user-friendly Q&A platform. Our platform offers a seamless experience for finding reliable answers from a network of knowledgeable professionals.

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 be the financial advantage (disadvantage) for the company compared with sale in its unprocessed form directly after the split-off point

Sagot :

abiolataiwo2015

Answer:

($5,300)

Explanation:

Calculation to determine what would be the financial advantage (disadvantage) for the company compared with sale in its unprocessed form directly after the split-off point

QI and VH

Sales value after further processing $37,800

($14 × 2,700)

Less Costs of further processing ($10,700)

Benefit of further processing $27,100

($37,800- $10,700)

Less: Sales value at split-off point ($32,400)

($12 × 2,700)

Net advantage (disadvantage) ($5,300)

($27,100+$32,400)

Therefore If product QI is processed further and sold, what would be the financial advantage (disadvantage) for the company compared with sale in its unprocessed form directly after the split-off point is $(5,300)

We hope this information was helpful. Feel free to return anytime for more answers to your questions and concerns. We hope you found this helpful. Feel free to come back anytime for more accurate answers and updated information. Thank you for visiting Westonci.ca. Stay informed by coming back for more detailed answers.