Riverside Company Manufactures G and H in a Joint Process

question 67

Essay

Riverside Company manufactures G and H in a joint process. The joint costs amount to $80,000 per batch of finished goods. Each batch yields 20,000 liters, of which 40% are G and 60% are H. The selling price of G is $8.75 per liter, and the selling price of H is $15.00 per liter.
Required:
A. If the joint costs are allocated on the basis of the products' sales value at the split-off point, what amount of joint cost will be charged to each product?
B. Riverside has discovered a new process by which G can be refined into Product GG, which has a sales price of $12 per liter. This additional processing would increase costs by $2.10 per liter. Assuming there are no other changes in costs, should the company use the new process? Show calculations.

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Definitions:

Boss Management

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The manner in which an individual expresses and exchanges information with others.

Leadership Style

The characteristic ways in which leaders guide, manage, and motivate others, impacting organizational culture and effectiveness.

Ohio State Studies

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