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QUESTION

A company manufactures three products using the same production process. The costs incurred up to the split-off point are $191,900.

A company manufactures three products using the same production process. The costs incurred up to the split-off point are $191,900. 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.

ProductNumber of Units Produced Selling Price at Split-Off Selling Price after Processing Additional Processing Costs D4,570$10.05$14.73$15,347E5,69011.8016.2817,731F1,79019.1122.8410,177

(b1)

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 DProduct EProduct FIncremental profit (loss)$$$

(b2)

Which product(s) should be processed further and which should be sold at the split-off point?

Product DProduct EProduct FA Company manufactures three productsa) Incremental profits ( loss) of each of the productsProduct DRevenues after further processing = $14.73*4,570=$ 67,316.10Incremental revenues= 67,316.10-...
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