11-157
147.
Portofino Manufacturing Corporation manufactures three products in a joint process.
Additional information is as follows:
J
K
L
Total
Units
produced
16,000
4,000
2,000
22,000
Sales value
at split-off
$300,000
$100,000
$20,000
$420,000
Addition
costs if
Processed
further
$48,000
$20,000
$6,000
$74,000
Sales value
if processed
Further
$340,000
$160,000
$40,000
$540,000
Joint costs
$120,000
Sales
$340,000
$160,000
$540,000
11-159
148.
11-161
149.
11-164
150.
Timberland Corporation produces three products from a joint process: One-X, Two-Y, and
Three-Z. Each product can be processed further and sold for more. Data on the processes
are as follows:
Product
One-X
Two-Y
Three-
Z
Total
Units
produced
16,000
8,000
4,000
28,000
Joint costs
$60,000
(a)
(b)
$120,000
Sales value
at split-off
(c)
(d)
$30,000
$200,000
Additional
Processing
Costs
$14,000
$10,000
$6,000
$30,000
Sales value
if
Processed
Further
$140,000
$60,000
$40,000
$240,000
11-166
151.
Penny’s Pineapples is a pineapple grower. After cultivating, fertilizing, growing, and picking
pineapples, the company sells whole pineapples to food processors. The company is
considering adding a processing line where sliced pineapples and pineapple juice, along
with a “mash” used for animal feed will be the final products. Projected information about
the costs follows:
Product
Units
produced
Separable
costs
Final
selling
price
Per unit
Sliced
pineapple
900,000
cans
$600,000
$3.00 per
can
Pineapple
juice
400,000
bottles
$150,000
$1.75 per
bottle
Mash
500,000
pounds
$120,000
$.50 per
pound
11-169
152.
Fantasy Manufacturing produces three products in a joint operation. Information regarding
the products appears below:
Item 1
Item 2
Item 3
Total
Units
Produced
20,000
25,000
10,000
55,000
Sales Value
at Split-off
$150,000
$50,000
$20,000
$220,000
Additional
costs if
Processed
further
$10,000
$30,000
$5,000
$45,000
Sales Value
if Processed
Further
$170,000
$90,000
$28,000
$288,000
Joint Costs
$100,000
Sales Value
11-170