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From a particular joint process, Moonlight company produces three products, A, B, and C. Each product may be sold at the point of split-off or
From a particular joint process, Moonlight company produces three products, A, B, and C. Each product may be sold at the point of split-off or processed further. Additional processing requires no special facilities, and production costs of further processing are entirely variable and traceable to the products involved. In 2012, all three products were processed beyond split-off. Joint production costs for the year were $89,000. Sales values and costs needed to evaluate Moonlight's 2012 production policy follow: (Click the icon to view the data.) Answer the following multiple-choice questions: For units of C, the unit production cost most relevant to a sell-or-process-further decision is (Round your answer to the nearest whole dollar.) A. $8 B. $6 C. $3 D. $1 O O O O Data table - Additional Costs and Sales Values if Processed Further Units Net Realizable Values Sales Added Product Produced (Sales Values) at Split Off Values Costs A 6,000 $ 32,000 $ 35,000 $ 16,000 B 4,000 44,000 50,000 12,000 C 10,000 21,000 32,000 8,000 Print Done
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