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6 4 Exercise 11-52 (Algo) Physical Quantities Method; Sell or Process Further (LO 11-8, 9) The following questions relate to Kyle Company, which manufactures
6 4 Exercise 11-52 (Algo) Physical Quantities Method; Sell or Process Further (LO 11-8, 9) The following questions relate to Kyle Company, which manufactures products KA, KB, and KC from a joint process. Joint product costs were $179,000. Additional information follows. points If Processed Further Product Units Produced KA KB 76,000 Sales Value at Split-Off $440,000 Sales Values 80,000 KC 44,000 410,000 350,000 $530,000 480,000 440,000 eBook Additional Costs $74,000 62,000 50,000 References After the publication of recent scientific test results, the government has banned the sale of product KC. IF KC is produced, it must be disposed of in an approved way that costs $211,000 for every 44,000 units produced. Required: a. Assuming that Kyle Company continues to use the physical quantities method of allocation, what joint costs will be allocated to KA and to KB, respectively? b. Which, if either, product would you recommend Kyle Company sell at split-off? Complete this question by entering your answers in the tabs below. Required A Required B Assuming that Kyle Company continues to use the physical quantities method of allocation, what joint costs will be allocated to KA and to KB, respectively? (Do not round intermediate calculations.) Product Joint costs KA KB < Required A Required B >
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