Marigold There produces a variety of soy products from soybeans and has just finished its first year of operations. Michael, the product manager, wants to evaluate the profitability of each product. Michael knows the process works essentially like this: the soybeans are processed in the company's manufacturing facility at a cost of $434,000, yielding both soy oil and soymeal. The soy oil can then be processed further into mayonnaise, while the soymeal can be processed further into animal feed. The quantities produced and sales values at the split-off point are as follows. Quantity of soy oil 13,200 pounds Quantity of soymeal 46,800 pounds Sales price of soy oil Sales price of soy meal $38.00 per pound $1.50 per pound (a) Using the physical quantities method, allocate the joint costs to the soy oil and the soymeal. (Round proportion to 2 decimal places, e.g. 0.25 and final answers to O decimal places, e.g. 5,125.) Soy Oil Allocated joint costs SA Soymeal

Marigold There produces a variety of soy products from soybeans and has just finished its first year of operations. Michael, the product manager, wants to evaluate the profitability of each product. Michael knows the process works essentially like this: the soybeans are processed in the company's manufacturing facility at a cost of $434,000, yielding both soy oil and soymeal. The soy oil can then be processed further into mayonnaise, while the soymeal can be processed further into animal feed. The quantities produced and sales values at the split-off point are as follows. Quantity of soy oil 13,200 pounds Quantity of soymeal 46,800 pounds Sales price of soy oil Sales price of soy meal $38.00 per pound $1.50 per pound (a) Using the physical quantities method, allocate the joint costs to the soy oil and the soymeal. (Round proportion to 2 decimal places, e.g. 0.25 and final answers to O decimal places, e.g. 5,125.) Soy Oil Allocated joint costs SA Soymeal

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter10: Decentralization: Responsibility Accounting, Performance Evaluation, And Transfer Pricing

Section: Chapter Questions

Problem 4CE

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At Modern Lumber Inc, Moise Ngwenya the producer of apple crates sold to growers, has been ablewith his current equipment, to produce 240 crates per 100 logs. He currently purchases 100 logs perday, and each log requires 3 labor-hours to process. He believes that he can hire a professionalbuyer who can buy a better-quality log at the same cost. If this is the case, he can increase productionto 260 crates per 100 logs. His labour hours will increase by 8 hours per day. What will be the impacton productivity (measured in crates per labor-hour) if the buyer is hired?
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