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cost and management accounting I Benjamin Signal Co produces products R,J 8. C from ajoint production process. Each product may be sold at the splitoff

cost and management accounting

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I Benjamin Signal Co produces products R,J 8. C from ajoint production process. Each product may be sold at the splitoff pint or be processed further. Joint product costs of $92,000 per year are allocated to the products based on the relative # of units produced. Data is shown below: Allocated Sales Product Units Produced Joint Prod Cost Value at Split off Point R 8,000 $32,000 $76,000 J 10,000 $40,000 $71,000 C 5,000 $20,000 $48,000 Product R can be processed beyond the splitoff point for an additional cost of $26,000 8. can then be sold for $105,000 Product J can be proecessed beyond the split-off point for an additiional cost of $38,000 a, can then be sold for $117,000 Product C can be processed beyond the slpitoff point for an additional $12,000 & can then be sold for $57,000 Required: Which product(s) should be processed beyond the split-off point? Show your calculations (8 Marks) Answer below: sales value after further processed sales value at split off incremental revenue less cost of further process Gain from further processing process further

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