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6 pts Harris Corp. manufactures three products from a common input in a joint processing operation. Joint processing costs up to the split-off point total
6 pts Harris Corp. manufactures three products from a common input in a joint processing operation. Joint processing costs up to the split-off point total $20,000 per year. The company allocates these costs to the joint products on the basis of their total sales value at the split-off point. Each product may be sold at the split-off point or processed further. The additional processing costs and sales value after further processing for each product (on an annual basis) are: Sales Value at Split-off Product A $ 15,000 Product B $3,000 Product C $ 8,000 Further Sales Value Processing After Further Costs Processing $ 2,500 $ 18,500 $ 1,000 $ 3,800 $ 3,500 $ 12,500 Required: Should each of the intermediate products be sold as is or processed further into an end product? Explain by showing the profi or loss resulting from further processing
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