Fill out the following ? with the correct answer using excels formula

Question

DATA

cost of wool $200,000

cost of serparation 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 CELLS MARKED WITH ? BELOW

example: Joint products costs and contribution approach

Analysis of the profitability of the overall operation:

combined final sales value ?

less costs of producting the end products:

cost of wool ?

cost of serpartion process ?

combined costs of dyeing ? ?

profit ?

Analysis of sell or process further

coarse fine superfine

wool wool wool

final sales of value after futher processing ? ? ?

less sales value at the split off point. ? ? ?

incremental revenue from further processing ? ? ?

less cost of further processng (dyeing) ? ? ?

financial advantage (disadvantage)

of further processing ? ? ?

Answer 1

Hello, Heva. I got as far as I could in an Excel spreadsheet that I copied onto a Google Sheets worksheet: https://docs.google.com/spreadsheets/d/1kZIwLLCx3XszMXA_pWKgxH2yGlHhYhUpyWmV3C_J7mg/edit?usp=sharing

The work shows the Heva Wool Company's overall sales, expenses, and profits. You can see how the Excel formulas work from those entries. I wasn't clear how to answer the questions pertaining to subsegments of the business, primarily because the cost of wool and separation aren't allocated separately - they are divided into the product areas for which the questions are asked. I may misunderstand, but you can use the same formulas and strategy to get those numbers.

I wasn't clear if you primarily needed help on the actual calculations, or on how to use Excel. Please ask if you have specific questions.

Bob