Reference no: EM132617382

Sell-as-is or Process Further. Odette Company makes two products from a common input. Joint processing costs up to the split-off point total P64,800 a year. The company allocates these costs to the joint products on the basis of their total sales values at the split-off point. Each product may be sold at the split-off point or processed further. Data concerning these products appear below:

...............................................................................Product X.....................Product Y...................Total

Allocated joint processing costs........... P32,400.......................P32,400..................P64,800

Sales value at split-off point.................. P36,000.........................P36,000..................P72,000

Costs of further processing ...................P20,300........................P14,300....................P34,600

Sales value after further processing.....P55,400.......................P53,000...................P108,400

Required:

Problem 1: What is the net monetary advantage (disadvantage) of processing Product X beyond the split-off point?

Problem 2: What is the net monetary advantage (disadvantage) of processing Product Y beyond the split-off point?

Problem 3: What is the minimum amount the company should accept for Product X if it is to be sold at the split-off point?

Problem 4: What is the minimum amount the company should accept for Product Y if it is to be sold at the split-off point?