The ABC Company manufactures three products: A, B and C. The company's monthly capacity is 20,000 machine hours. In the current month, the total cost of producing 1,000 units of \(A, 2,000\) units of \(B\), and 2,000 units of \(C\) was \(\$ 22,000\). Selling prices per unit of the three products at split-off are: A, \(\$ 18 ; \mathrm{B}, \$ 6 ; \mathrm{C}, \$ 1.15\). Products A and B are considered as main products; Product \(\mathrm{C}\) is a by-product. Net realizable value of the by-product after deducting 15 cents per unit for disposal cost is treated as a reduction in joint manufacturing costs. Ending inventories include 100 units of A, 200 units of B, 500 units of \(C\).

{Required:}

(1) Compute ending inventories of \(A\) and \(B\) on the basis of relative sales value at split-off.

(2) Repeat (1) using physical units as the basis.

(3) Suppose Product A can be further processed and then sold for a net selling price of \(\$ 21\) per unit, and the necessary additional processing cost is \(\$ 2,000\). Should Product A be further processed? Why?

(4) Assume that Products A and B can be further processed and then sold for net selling prices of \(\$ 21\) and \(\$ 9\) per unit, respectively. It is estimated that the additional costs of processing A or B is \(\$ 1\) per unit. Suppose that the company has idle machine capacity of 2,500 hours to further process Products \(A\) and \(B\), and that the machine hours required to further process each unit of \(\mathrm{A}\) and \(\mathrm{B}\) are 2 and 1 , respectively. Should the company further process A and/or B? If yes, how many?