Blossom Inc. produces three separate products from a common process costing $100,300. Each of the products can be sold at the split-off point or can be processed further and then sold for a higher price. Shown below are cost and selling price data for a recent period. Sales Value at Split-Off Point Cost to Process Further Sales Value after Further Processing Product 10 $59,400 $100,900 $190,100 Product 12 15,000 30,100 34,000 Product 14 55,600 149,400 215,900 Determine total net income if all products are sold at the split-off point. Net income
Blossom Inc. produces three separate products from a common process costing $100,300. Each of the products can be sold at the split-off point or can be processed further and then sold for a higher price. Shown below are cost and selling price data for a recent period. Sales Value at Split-Off Point Cost to Process Further Sales Value after Further Processing Product 10 $59,400 $100,900 $190,100 Product 12 15,000 30,100 34,000 Product 14 55,600 149,400 215,900 Determine total net income if all products are sold at the split-off point. Net income
Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter11: Differential Analysis And Product Pricing
Section: Chapter Questions
Problem 17E: Product cost method of product costing Smart Stream Inc. uses the product cost method of applying...
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Blossom Inc. produces three separate products from a common
Sales Value
at Split-Off Point |
Cost to
Process Further |
Sales Value
after Further Processing |
|||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Product 10
|
$59,400
|
$100,900
|
$190,100
|
||||||||||
Product 12
|
15,000
|
30,100
|
34,000
|
||||||||||
Product 14
|
55,600
|
|
149,400
|
215,900
|
Determine total net income if all products are sold at the split-off point.
Net income |
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