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# FF0000RESTRICTED MORPHO Chapter 12: Applying Excel Data Exhibit 12-6 Santa Maria Wool Cooperative Cost of wool Cost of separation process Sales value...

Please answer Chapter 12, pages 555-556, Requirement 1 (problem and question) and Chapter 12, pages 555-556, Requirement 2 (question). Thanks

FF0000RESTRICTED MORPHO Chapter 12: Applying Excel Data Exhibit 12-6 Santa Maria Wool Cooperative Cost of wool \$200,000 Cost of separation process \$40,000 Sales value of intermediate products at split-off point: Undyed coarse wool \$120,000 Undyed fine wool \$150,000 Undyed superfine wool \$60,000 Costs of further processing (dyeing) intermediate products: Undyed coarse wool \$50,000 Undyed fine wool \$60,000 Undyed superfine wool \$10,000 Sales value of end products: Dyed coarse wool \$160,000 Dyed fine wool \$240,000 Dyed superfine wool \$90,000 Enter a formula into each of the cel s marked with a ? below Example: Joint Product Costs and the Contribution Approach Analysis of the profitability of the overall operation: Combined final sales value \$490,000 Less costs of producing the end products: Cost of wool \$200,000 Cost of separation process 40,000 Combined costs of dyeing 120,000 360,000 Profit \$130,000 Analysis of sell or process further: Coarse Fine Superfine Wool Wool Wool Final sales value after further processing \$160,000 \$240,000 \$90,000 Less sales value at the split-off point 120,000 150,000 60,000 Incremental revenue from further processing 40,000 90,000 30,000 Less cost of further processing (dyeing) 50,000 60,000 10,000 Profit (loss) from further processing \$(10,000) \$30,000 \$20,000 Chapter 12, pages 555-556, Requirement 1 Data Exhibit 12-6 Santa Maria Wool Cooperative Cost of wool \$200,000 Cost of separation process \$40,000 Sales value of intermediate products at split-off point: Undyed coarse wool \$120,000 Undyed fine wool \$150,000 Undyed superfine wool \$60,000 Costs of further processing (dyeing) intermediate products: Undyed coarse wool \$30,000 Undyed fine wool \$60,000 Undyed superfine wool \$10,000 Sales value of end products: Dyed coarse wool \$160,000 Dyed fine wool \$240,000 Dyed superfine wool \$90,000 Enter a formula into each of the cel s marked with a ? below Example: Joint Product Costs and the Contribution Approach Analysis of the profitability of the overall operation: Combined final sales value \$490,000 Less costs of producing the end products: Cost of wool \$200,000 Cost of separation process 40,000 Combined costs of dyeing 120,000 360,000 Profit \$130,000 Analysis of sell or process further: Coarse Fine Superfine Wool Wool Wool Final sales value after further processing \$160,000 \$240,000 \$90,000 Less sales value at the split-off point 120,000 150,000 60,000 Incremental revenue from further processing 40,000 90,000 30,000 Less cost of further processing (dyeing) 50,000 60,000 10,000 Profit (loss) from further processing \$(10,000) \$30,000 \$20,000 Operations should change in response to this change in cost Chapter 12, pages 555-556, Requirement 2 Data Exhibit 12-6 Santa Maria Wool Cooperative Cost of wool \$290,000 Cost of separation process \$40,000 Sales value of intermediate products at split-off point: Undyed coarse wool \$100,000 Undyed fine wool \$110,000 Undyed superfine wool \$90,000 Costs of further processing (dyeing) intermediate products: Undyed coarse wool \$50,000 Undyed fine wool \$60,000 Undyed superfine wool \$10,000 Sales value of end products: Dyed coarse wool \$180,000 Dyed fine wool \$210,000 Dyed superfine wool \$90,000 Enter a formula into each of the cel s marked with a ? below Example: Joint Product Costs and the Contribution Approach Analysis of the profitability of the overall operation: Combined final sales value \$480,000 Less costs of producing the end products: Cost of wool \$290,000 Cost of separation process 40,000 Combined costs of dyeing 120,000 450,000 Profit \$30,000 Analysis of sell or process further: Coarse Fine Superfine Wool Wool Wool Final sales value after further processing \$180,000 \$210,000 \$90,000 Less sales value at the split-off point 100,000 110,000 90,000 Incremental revenue from further processing 80,000 100,000 - Less cost of further processing (dyeing) 50,000 60,000 10,000 Profit (loss) from further processing \$30,000 \$40,000 \$(10,000) Check your worksheet by changing the cost of further processing undyed coarse wool in cel B12 to \$30,000. The overal profit from processing al intermediate products into final products should now be \$150,000 and the profit from further processing course wool should now be \$10,000. If you do not get these answers, find the errors in your worksheet and correct them. How should operations change in response to this change in cost? In industries that process joint products, the costs of the raw material inputs and the sales values of intermediate and final products are often volatile. Change the data area of your worksheet to match the fol owing: a. What is the overal profit in al intermediate products are processed into final products? b. What is the profit from further processing each of the intermeduate products? c. With these new costs and sel ing prices, what recommedations would you make concerning the company's operations? If your recommendation is fol owed, what should be the overal profit of the company? a. The overal profit in al intermediate products are processed into final products b. The profit from further processing each of the intermeduate products c. With these new costs and sel ing prices, the recommedations that I would make concerning the company's operations are If my recommendation is fol owed, the overal profit of the company should be
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Chapter 12, pages 555-556, Requirement 1
Data
Exhibit 12-6 Santa Maria Wool Cooperative
Cost of wool
Cost of separation process
Sales value of intermediate products at split-off point:
Undyed...

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