Financial & Managerial Accounting 18th Edition

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2021-1, L021-2, LO21-3, 021-4 ancial concerns should the company take into consideration? Kelp Company produces three joint products from seaweed. At the split-off point, three basic prod. ucts emerge: Sea Tea, Sea Paste, and Sea Powder. Each of these products can either be sold at the split-off point or be processed further. If they are processed further, the resulting products can be sold as delicacies to health food stores. Cost and revenue information is as follows. PROBLEM 21.7A Joint Products Sales Value and Additional Costs If Processed Further Sales Value Final Sales at Split-Off Value Product Pounds Produced Additional Cost Sea Tea Sea Paste Sea Powder 9,000 4,000 2,000 $60,000 80,000 70.000 $ 90.000 160,000 85.000 $35,000 50.000 14.000 a. Instructions Which products should Kelp process beyond the split-off point? b. At what price per pound would it be advantageous for Kelp Company to sell Sea Paste at the split-off point rather than process it further