(Processing beyond split-off and cost allocations) Sue Bird Products has a joint process that makes three products from honey for institutional cus¬ tomers. Joint cost for the process is $60,000.

A container of honey butter, jam, and syrup includes, respectively, 10 pounds, 6 pounds, and 2 pounds of product.

a. Determine which products should be processed beyond the split-off point.

b. Assume honey syrup should be treated as a by-product. Allocate the joint processing cost based on units produced, weight, and approxi¬ mated net realizable value at split-off. Use the net realizable value method in accounting for any by-products. LO1.

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Units of Per Unit Selling Price Incremental Final Processing Sales Product Output at Split-Off Cost Price Honey butter 5,000 $2.00 $1.50 $3.00 Honey jam 10,000 1.00 2.00 6.00 Honey syrup 500 1.50 0.20 1.80