Reference no: EM132561046

COMBI Inc. manufactures three products. The following production data were provided by COMBI Inc. for the current period:

Product name           Units produced                    Additional processing cost after split off              Final selling price

Xen                             1,000                                         20,000                                                         50

Yen                               2,000                                         10,000                                                     10

Zen                                 3,000                                           30,000                                                   30

Joint product costs for the current period were as follows:

Raw materials           10,000

Direct labor                 15,000

Factory overhead              25,000

The company uses net realizable value method for allocating join costs.

Question 1: What is the gross profit/(loss) on the sale of all Xen products?

30,000

21,667

15,000

5,000

Question 2: What is the total gross profit/(loss) on the sale of all the joint products?

40,000

60,000

50,000

30,000