accounting joint products Ralph produces three products, in fixed proportions. Call them A, B, and C.

Relevant data follow.

A units produced 500 selling price per unit at split-off 200 B

750 300 C

400 10 The cost in the joint production facility totaled 300,000. Think of this as 500 units of "joint work" in which the three products are produced in the proportions of 1:1.5:.8. Each such unit of joint work costs 600. So 500 units of joint work entails joint eost of 300,000, and produces 500 of A, 750 of B and 400 of C.

Product B can be processed further, after the split-off point. Such processing eosts 50 per unit and any product processed in this fashion sells for 375 per unit.

a] Determine Ralph' s profit, initially assuming product B is not processed further and then assuming it is processed further.

b] Determine the profitability of each of Ralph' s products, assuming product B is processed further. OO this six different ways: treating product C as a by-product or a joint product, and using (i) physical units; (ii) relative sales value at split-off; and

(iii) net realizable value to allocate the joint eost. (In the by-product mode, treat the sales value of C as a net agaiust the joint cost).

AppendixLO1