Maurice Tutor

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    Argosy University/ Phoniex University/
    Nov-2005 - Oct-2011

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    Phoniex University
    Oct-2001 - Nov-2016

Category > Management Posted 04 Apr 2018 My Price 6.00

Cost Cheyenne, In

ES.8A. Joint process the assemblies further cal Cost Cheyenne, Inc. produces three products from a common input. The joint costs for a typi quarter follow: Direct materials $45,000 Direct labor 55,000 Overhead 60,000 The revenues from each product are as follows: Product A $75,000 Product B $80,000 Product C $30,000 Management is considering processing ProductAbeyond the split-off point, which would increase the sales value of Product Ato $116,000. However, to process Product Afurther means that the company must rent some special equipment costing $17,500 per quarter. Additional materials and labor also needed would cost $12,650 per quarter. Required a. What is the gross profit currently being earned by the three products for one quarter? b. What is the effect on quarterly profits if the company decides to process Product Afurther? Joint Cost Cheyenne, Inc. produces three products from a common input. The joint costs for a typical quarter follow: The revenues from each product are as follows: Management is considering processing Product A beyond the split-off point, which would increase the sales value of Product A to $116,000. However, to process Product A further means that the company must rent some special equipment costing $17, 500 per quarter. Additional materials and labor also needed would cost $12, 650 per quarter. Required a. What is the gross profit currently being earned by the three products for one quarter? b. What is the effect on quarterly profits if the company decides to process Product A further?

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Maurice Tutor
(5)
Status NEW Posted 04 Apr 2018 08:04 PM My Price 6.00

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