Question
Company D makes two products from a joint input that have the following information: Sales Value Total Additional Sales Value Units Per Unit Processing Per
Company D makes two products from a joint input that have the following information:
|
|
| Sales Value | Total Additional | Sales Value |
|
| Units | Per Unit | Processing | Per Unit After |
|
| Produced | At Split-Off | Costs | Additional Processing |
| Product A | 40,000 | $10 | $400,000 | $15 |
| Product B | 150,000 | 4 | 300,000 | 7 |
The joint cost incurred to produce the two products to the split-off point is $600,000. What is the net benefit (cost) of processing Product A further?
| A. | ($200,000) | |
| B. | $40,000 | |
| C. | ($120,000) | |
| D. | $240,000 |
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Fundamentals Of Financial Accounting
Authors: Fred Phillips, Robert Libby, Patricia A Libby
3rd Edition
0073527106, 9780073527109
