Chapter 11: Applying Excel Data Exhibit 11-7 Santa Maria Wool Cooperative Cost of wo

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Chapter 11: Applying Excel



















Data









Exhibit 11-7 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 cells marked with a ?
below



Example: Joint Product Costs and the Contribution
Approach













Analysis of the profitability of the overall
operation:








Combined
final sales value



?




Less
costs of producing the end products:









Cost of wool

?







Cost of separation process

?







Combined costs of dyeing

?

?





Profit



?















Analysis of sell or process further:











Coarse

Fine

Superfine





Wool

Wool

Wool


Final
sales value after further processing

?

?

?


Less
sales value at the split-off point

?

?

?



Incremental revenue from further processing

?

?

?


Less
cost of further processing (dyeing)

?

?

?


Financial
advantage (disadvantage) of further processing

?

?

?