Please solve all parts with details and do not give solution in image format Ibsen Company makes two products from a common input. Joint processing costs up to the split-off point total $47,000 a year. Thecompany allocates these costs to the joint products on the basis of their total sales values at the split-off point. Each product may besold at the split-off point or processed further. Data concerning these products appear below:Allocated joint processing costsSales value at split-off pointCosts of further processingSales value after further processingaProduct X$ 18,800$ 20,000$ 24,500$ 38,400b.c. Minimum acceptable amountd. Minimum acceptable amountProduct Y$ 28,200$ 30,000$ 18,800$ 58,900Required:a. What is financial advantage (disadvantage) of processing Product X beyond the split-off point? (Negative amount should beindicated by a minus sign.)b. What is financial advantage (disadvantage) of processing Product Y beyond the split-off point?c. What is the minimum amount the company should accept for Product X if it is to be sold at the split-off point?d. What is the minimum amount the company should accept for Product Y if it is to be sold at the split-off point?Total$ 47,000$ 50,000$ 43,300$ 97,300

Incremental revenue, in the question, is the difference between sales value after further processing…

Ibsen Company makes two products from a common input. Joint processing costs up to the split-off point total $47,000 a year. The company allocates these costs to the joint products on the basis of their total sales values at the split-off point. Each product may be sold at the split-off point or processed further. Data concerning these products appear below: Allocated joint processing costs Sales value at split-off point Costs of further processing Sales value after further processing Product X $ 18,800 $ 20,000 $ 24,500 $ 38,400 Product Y $ 28,200 $ 30,000 $ 18,800 $ 58,900 a. b. c. Minimum acceptable amount d. Minimum acceptable amount Total $ 47,000 $ 50,000 $ 43,300 $ 97,300 Required: a. What is financial advantage (disadvantage) of processing Product X beyond the split-off point? (Negative amount should be indicated by a minus sign.) b. What is financial advantage (disadvantage) of processing Product Y beyond the split-off point? c. What is the minimum amount the company should accept for Product X if it is to be sold at the split-off point? d. What is the minimum amount the company should accept for Product Y if it is to be sold at the split-off point?

Ibsen Company makes two products from a common input. Joint processing costs up to the split-off point total $47,000 a year. The company allocates these costs to the joint products on the basis of their total sales values at the split-off point. Each product may be sold at the split-off point or processed further. Data concerning these products appear below: Allocated joint processing costs Sales value at split-off point Costs of further processing Sales value after further processing Product X $ 18,800 $ 20,000 $ 24,500 $ 38,400 Product Y $ 28,200 $ 30,000 $ 18,800 $ 58,900 a. b. c. Minimum acceptable amount d. Minimum acceptable amount Total $ 47,000 $ 50,000 $ 43,300 $ 97,300 Required: a. What is financial advantage (disadvantage) of processing Product X beyond the split-off point? (Negative amount should be indicated by a minus sign.) b. What is financial advantage (disadvantage) of processing Product Y beyond the split-off point? c. What is the minimum amount the company should accept for Product X if it is to be sold at the split-off point? d. What is the minimum amount the company should accept for Product Y if it is to be sold at the split-off point?

Principles of Cost Accounting

17th Edition

ISBN:9781305087408

Author:Edward J. Vanderbeck, Maria R. Mitchell

Publisher:Edward J. Vanderbeck, Maria R. Mitchell

Chapter6: Process Cost Accounting—additional Procedures; Accounting For Joint Products And By-products

Section: Chapter Questions

Problem 13P: Venezuela Oil Inc. transports crude oil to its refinery where it is processed into main products...

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