Charlottetown Powder Company produces powder in batches. Each powder can be sold in its current...
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Charlottetown Powder Company produces powder in batches. Each powder can be sold in its current condition or processed further and specialized for high priced department stores. Data concerning the various products appear below. Joint processing costs are $200,000. Required: a) Which products should be processed further? ________________
b) Allocate the joint product costs on the basis of physical units:
Talcom: _____________
Sweet Smelling: _____________
Regular: _________________
c) Allocate the joint product costs on the basis of the NRV after further processing:
Talcom: _____________
Sweet Smelling: _____________
Regular: _________________
Number of Pounds Price per Pound at Split-Off Price after processing further Further Type of Powder Talcom Sweet Regular Processing Costs 200,000 $ 180,000 $ 120,000 $ 8.00 $ 6.00 $ 5.00 $ 90,000 $ 45,000$ 60,000 9.00 7.00 6.00
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Required: a) Which products should be processed further? ________________