Question
CUIK-905 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
CUIK-905 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 Selling Price Quarterly Output A $ 5 per pound 10,000 pounds B $ 7 per pound 22,000 pounds C $ 11 per gallon 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 Selling Price A $ 53,000 $ 8 per pound B $ 38,000 $ 11 per pound C $ 18,000 $ 20 per gallon Which products should be processed further? Multiple Choice A and B A, B, and C B and C A and C
Multiple Choice A and B A, B, and C B and C A and C CUIK-905 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: 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: Which products should be processed furtherStep by Step Solution
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