Timberland Corporation Produces Three Products from a Joint Process: One-X,Two-Y,and

question 64

Essay

Timberland Corporation produces three products from a joint process: One-X,Two-Y,and Three-Z.Each product can be processed further and sold for more.Data on the processes are as follows: $$\begin{array} { | l | r | r | r | r | } \hline \text { Procuct } & \text { One-x } & \text { Two-Y } & \text { Three-Z } & \text { Total } \\\hline \text { Units produced } & 16,000 & 8,000 & 4,000 & 28,000 \\\hline \text { Joint costs } & \$ 60,000 & ( \text { a } ) & ( b ) & \$ 120,000 \\\hline \begin{array} { l } \text { Sales value at } \\\text { split-oft }\end{array} & ( c ) & ( d ) & \$ 30,000 & \$ 200,000 \\\hline \begin{array} { l } \text { Additional } \\\text { Processing Costs }\end{array} & \$ 14,000 & \$ 10,000 & \$ 6,000 & \$ 30,000 \\\hline \begin{array} { l } \text { Sales value if } \\\text { Processed Further }\end{array} & \$ 140,000 & \$ 60,000 & \$ 40,000 & \$ 240,000 \\\hline\end{array}$$
The amount of joint costs for One-X is the amount that has been allocated.Required:
Determine the values for the lettered spaces.(CPA adapted)

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Definitions:

Absorbable Sutures

Surgical threads that naturally break down and are absorbed by the body over time, eliminating the need for removal.

Gut

Commonly refers to the gastrointestinal tract, the system of organs responsible for digestion and absorption of food.

Vaporizes

To convert or change a substance from a solid or liquid state into a gas or vapor, often by applying heat.

Cryosurgery

A medical procedure that uses extreme cold to destroy abnormal or diseased tissue.