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CUIK-836 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-836 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 A Selling Price Quarterly Output B C 5 per pound $ 6 per pound $ 13 per gallon 10,000 pounds 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: Additional Product Processing Costs Selling Price ABC $ 53,000 $ 7 per pound $ 38,000 $ 11 per pound A 18,000 $ 19 per gallon Which products should be processed further? Multiple Choice A and C A, B, and C
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