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5 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
5 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: Product A Selling Price Quarterly Output $ 4 per pound 10,000 pounds B 6 per pound 22000 pounds 12 per gallon 5.000 gallons 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: Product ABC Additional Processing Costs Selling Price 69 69 69 $ 53.000 $ 7 per pound 38,000 $ 12 per pound 18,000 $ 19 per gallon Which products should be processed further? Multiple Choice A. B. and C Band C A and C A and B
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