Reference no: EM132540334
Dyers Lld manufacturers four products ( W,X,Y and Z) IN A Single process.The joint costs of the process for a given period are ksh 104,000
The Company produced and sold the following quantities in the period:
W 700 Kilos selling price ksh 50 per kilo.
X 800 Kilos selling price ksh 60 per kilo.
Y 1000 Kilos selling price ksh 60 per kilo.
Z 700 Kilos selling price ksh 30 per kilo.
Required:
Question a) calculate the profit for each of the four products, using outpt and sales value method
Question b) The company is considering further processing of product Y.Thecost of the further processing would be ksh 6 per kilo. There would be a 10% loss in the process and the new product would be sold for ksh 70 per kilo.
i) calculate the profit or loss that would occur if the further processing is carried out.
ii) calculate the minimum selling price that would make further processing worthwhile
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