Question
Charger Co manufactures products A, B and C from a joint process. Joint costs are allocated on the basis of relative sales value of the
Charger Co manufactures products A, B and C from a joint process. Joint costs are allocated on the basis of relative sales value of the products at the split-off point. Additional info:
| A | B | C | Totes McGoats | |
| Units Produced | 12,000 | 8,000 | 4,000 | 24,000 |
| Joint Costs | $144,000 | $60,000 | $36,000 | $240,000 |
| Sale Value Before Additional Processing | 240,000 | 100,000 | 60,000 | 400,000 |
| Additional Costs for Further Processing | 28,000 | 20,000 | 12,000 | 60,000 |
| Sales Value if Further Processed | 280,000 | 120,000 | 70,000 | 470,000 |
Which products should be further processed and sold?
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Auditing A Practical Approach
Authors: Robyn Moroney, Fiona Campbell, Jane Hamilton
3rd Edition
0730364577, 978-0730364573
