On january 1, year 1, kiner company formed a foreign branch. the branch purchased merchandise at a cost of 720,000 local currency units (lcu) on february 15, year 1. the purchase price was equivalent to $180,000 on this date. the branch’s inventory at december 31, year 1, consisted solely of merchandise purchased on february 15, year 1, and amounted to 240,000 lcu. the exchange rate was 6 lcu to $1 on december 31, year 1, and the average rate of exchange was 5 lcu to $1 for year 1. assume that the lcu is the functional currency of the branch. in kiner’s december 31, year 1 balance sheet, the branch inventory balance of 240,000 lcu should be translated to united states dollars at

Joint cost cheyenne, inc. produces three products from a common input. the joint costs for a typical quarter follow: direct materials $45,000 direct labor 55,000 overhead 60,000 the revenues from each product are as follows: product a $75,000 product b 80,000 product c 30,000 management is considering processing product a beyond the split-off point, which would increase the sales value of product a to $116,000. however, to process product a further means that the company must rent some special equipment costing $17,500 per quarter. additional materials and labor also needed would cost $12,650 per quarter. a. what is the gross profit currently being earned by the three products for one quarter? $answer b. what is the effect on quarterly profits if the company decides to process product a further? $answer