Calculate Relative sales value method…managerial accounting… Need Fast


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Calculate Relative sales value method…managerial accounting… Need Fast 1 answer below » (TCO 7) Products Gamma and Delta are joint products. The joint production cost of the products is $800. Gamma has a market value of $500 at
the split-off point. If Gamma is further processed at an additional cost of $600, its market value is $1,400. Product Delta has a market value of $1,100 at the
split-off point. If Product Delta is further processed at an additional cost of $300, its market value is $1,400. Using the relative sales
value method, calculate the joint product cost that would be allocated to Gamma and Delta. How do you know if one of the products should be further View complete question » (TCO 7) Products Gamma and Delta are joint products. The joint production cost of the products is $800. Gamma has a market value of $500 at
the split-off point. If Gamma is further processed at an additional cost of $600, its market value is $1,400. Product Delta has a market value of $1,100 at the
split-off point. If Product Delta is further processed at an additional cost of $300, its market value is $1,400. Using the relative sales
value method, calculate the joint product cost that would be allocated to Gamma and Delta. How do you know if one of the products should be further
processed? Answer found: 1.Net Present Value = Cash Inflow-Outflow/(1+i)^t =600000-300000/(1+0.09)^8 =$150559.8839 Company should not proceed with project as it’s NPV is just about half it’s initial investment. View less » Dec 10 2013 10:18 AM

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