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Green Company produces products RJ, and C from a joint production process. Each product may be sold at the split-off point or be processed further.
Green Company produces products RJ, and C from a joint production process. Each product may be sold at the split-off point or be processed further. Joint production costs of $92,000 per year are allocated to the products based on the relative number of units produced. Data for Green's operations for the current year are as follows: Units Allocated Joint Sales Value Product Produced Production Cost At Split-off IR 8,000 $32,000 $76,000 D 10,000 40,000 71,000 C 5,000 20,000 48,000 Product R can be processed beyond the split-off point for an additional cost of $26,000 and can then be sold for $105,000. Product can be processed beyond the split- off point for an additional cost of $38,000 and can then be sold for $117.000. Product can be processed beyond the split-off point for an additional cost of $12,000 and can then be sold for $57,000. Which products should be processed beyond the split-off point? (Show all calculations either in response box below or an uploaded file)
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