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Category > Business & Finance Posted 08 May 2017 My Price 5.00

EXERCISE 12–8 Sell or Process Further [LO7]

EXERCISE 12–8 Sell or Process Further [LO7]

Morrell Company produces several products from processing krypton, a rare mineral. Material and pro- cessing costs total $30,000 per ton, one-third of which are allocated to the product merifulon. The meri- fulon produced from a ton of krypton can either be sold at the split-off point, or processed further at a cost of $13,000 and then sold for $60,000. The sales value of merifulon at the split-off point is $40,000.

Required:

Should merifulon be processed further or sold at the split-off point?

Answers

(8)
Status NEW Posted 08 May 2017 05:05 PM My Price 5.00

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Attachments

file 1494263912-1364292_1_636297768915524236_1364292.xlsx preview (139 words )
De-----------scr-----------ipt-----------ion-----------EXE-----------RCI-----------SE -----------12â-----------€“8----------- Se-----------ll -----------or -----------Pro-----------ces-----------s F-----------urt-----------her----------- [-----------LO7-----------]Mo-----------rre-----------ll -----------Com-----------pan-----------y p-----------rod-----------uce-----------s s-----------eve-----------ral----------- pr-----------odu-----------cts----------- fr-----------om -----------pro-----------ces-----------sin-----------g k-----------ryp-----------ton-----------, a----------- ra-----------re -----------min-----------era-----------l. -----------Mat-----------eri-----------al -----------and----------- pr-----------o- -----------ces-----------sin-----------g c-----------ost-----------s t-----------ota-----------l $-----------30,-----------000----------- pe-----------r t-----------on,----------- on-----------e-t-----------hir-----------d o-----------f -----------whi-----------ch -----------are----------- al-----------loc-----------ate-----------d t-----------o t-----------he -----------pro-----------duc-----------t m-----------eri-----------ful-----------on.----------- Th-----------e m-----------eri------------ f-----------ulo-----------n p-----------rod-----------uce-----------d f-----------rom----------- a -----------ton----------- of----------- kr-----------ypt-----------on -----------can----------- ei-----------the-----------r b-----------e s-----------old----------- at----------- th-----------e s-----------pli-----------t-o-----------ff -----------poi-----------nt,----------- or----------- pr-----------oce-----------sse-----------d f-----------urt-----------her----------- a-----------t a----------- co-----------st -----------of -----------$13-----------,00-----------0 a-----------nd -----------the-----------n s-----------old----------- fo-----------r $-----------60,-----------000-----------. T-----------he -----------sal-----------es -----------val-----------ue
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