ACCOUNT- produces three separate products from a common process costing
by ella | Aug 20, 2025 | Business
Exercise 20-10 Stahl Inc. produces three separate products from a common process costing $100,274. Each of the products can be sold at the split-off point or can be processed further and then sold for a higher price. Shown below are cost and selling price data for a recent period.
Sales Value at
Split-Off Point |
Cost to
Process Further |
Sales Value after
Further Processing |
| Product 10 |
$59,666 |
$100,617 |
$189,062 |
| Product 12 |
15,023 |
30,321 |
34,205 |
| Product 14 |
55,018 |
150,339 |
214,070 |
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| Determine total net income if all products are sold at the split-off point.
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| Determine total net income if all products are sold after further processing.
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Calculate incremental profit/(loss) and determine which products should be sold at the split-off point and which should be processed further. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).)
| Product |
Incremental profit (loss) |
Decision |
| Product 10 |
$ |
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| Determine total net income using the results from previous part.
Is the net income different from that determined in part (b)?
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