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Benjamin Company produces products C, J, and R from a joint production process. Each product may be sold at the split-off point or processed further.
- Benjamin Company produces products C, J, and R from a joint production process. Each product may be sold at the split-off point or processed further. Joint production costs of $95,000 per year are allocated to the products based on the relative number of units produced. Data for Benjamin's operations for last year follow:
|
|
|
Units Produced |
Sales Values at Split-Off | Sales Values If Processed Further | Costs of Processing Further |
|
| Product C | 6,000 | $75,000 | $100,000 | $20,000 |
|
| Product J | 9,000 | $70,000 | $115,000 | $36,000 |
|
| Product R | 4,000 | $46,500 | $55,000 | $10,000 |
Required:
Which products should be processed beyond the split-off point?
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