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Cinrich Products produces two joint products (A and B). Prior to the split-off point, the company incurs costs of $5,460. Product A weighs 31
Cinrich Products produces two joint products (A and B). Prior to the split-off point, the company incurs costs of $5,460. Product A weighs 31 pounds, and Product B weighs 124 pounds. Product A sells for $110 per pound, and Product B sells for $33 per pound. Based on a physical measure of output, allocate joint costs to Products A and B. Joint costs Product A $ Product B $ Compare the costs to the selling prices. Should the company sell products whose selling price is less than the allocated joint cost? Company sell products whose selling price is less than the allocated joint cost.
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