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1 company manufactures three products from a common input in a joint processing operation. Joint processing costs up to the split-off point total $75,000 per
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company manufactures three products from a common input in a joint processing operation. Joint processing costs up to the split-off point total $75,000 per quarter. The company allocates these costs to the joint products on the basis of their relative sales value at the split-off point. Unit selling prices and total output at the split-off point are as follows: Selling Price Product A $ 3 per pound Quarterly Output 10,000 pounds 22,000 pounds 5,000 gallons $ 7 per pound $ 11 per gallon Each product can be processed further after the split-off point. Additional processing requires no special facilities. The additional processing costs (per quarter) and unit selling prices after further processing are given below: Additional Product Selling Price Processing Costs $ 53,000 A $7 per pound B $ 38,000 $ 11 per pound C $18,000 $18 per gallon Which products should be processed further? Multiple Choice A and B B and C A, B, and C A and C BCStep by Step Solution
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