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CUIK-113 company manufactures three products from a common input in a joint processing operation. Joint processing costs up to the split-off point total $75,000
CUIK-113 company manufactures three products from a common input in a joint processing operation. Joint processing costs up to the split-off point total $75,000 per quarter. The company allocates these costs to the joint products on the basis of their relative sales value at the split-off point. Unit selling prices and total output at the split-off point are as follows: Product ABC Selling Price Quarterly Output $ 4 per pound 10,000 pounds $ 7 per pound $ 13 per gallon 22,000 pounds 5.000 gallons Each product can be processed further after the split-off point. Additional processing requires no special facilities. The additional processing costs (per quarter) and unit selling prices after further processing are given below: Product Additional Processing Costs A B C $ $ 69 69 69 53,000 Selling Price $ 6 per pound 38,000 $ 13 per pound $ 18,000 $ 19 per gallon Which products should be processed further? Multiple Choice B and C A and B A and C A, B, and C
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