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Brevall Industries makes com oll and com meal from harvested com in a joint process. Com oil can be further processed into margarine, and
Brevall Industries makes com oll and com meal from harvested com in a joint process. Com oil can be further processed into margarine, and the com meal can be further processed into com muffin mix. The joint cost incurred to process the com to the split-off point is $140,000. Information on the quantities, value, and further processing costs for the joint product appears below Com Oil Com Meal Quantity 800,000 lbs 1,600,000 lbs Sales Value Estimated Further At Split-off Processing Cost Sales Value After Processing $0.30 0.10b $0.35/6 0.40% 50.601b. 0.5516 Breval allocates the joint cost to the products based on physical units. Com oil is assigned $46,667 of joint cost and com meal is assigned $93.333 of joint cost. Which products should be processed further? Com ol O Com meal O Both com oil and commeal Neither com oll nor com meal O Additional Information is needed to answer the question
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