Jorioz Co makes joint products X and Y. $120,000 joint processing costs are incurred. At the split-off point, 10,000 units of X and 9,000 units of Y are produced, with selling prices of $1.20 for X and $1.50 for Y. The units of X could be processed further to make 8,000 units of product Z. The extra costs incurred in this process would be fixed costs of $1,600 and variable costs of $0.50 per unit of input. The selling price of Z would be $2.25. What would be the outcome if product X is further processed?
A、$600 loss
B、$400 gain
C、$3,900 gain
D、$1,600 loss
A、$600 loss
B、$400 gain
C、$3,900 gain
D、$1,600 loss
【参考答案及解析】
Before further processing, the sales value of X (10,000 units × $1.20) = $12,000 After further processing: Sales value of Z (8,000 units × $2.25) = $18,000 Further processing costs ((10,000 units of X × $0.50) + $1,600) = $6,600 This gives a net return of $11,400 which is $600 less than the sales value of X.
Before further processing, the sales value of X (10,000 units × $1.20) = $12,000 After further processing: Sales value of Z (8,000 units × $2.25) = $18,000 Further processing costs ((10,000 units of X × $0.50) + $1,600) = $6,600 This gives a net return of $11,400 which is $600 less than the sales value of X.