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Gusler company manufactures three products from a common input in a joint processing operation. Joint processing costs up to the split off point total $98,000
Gusler company manufactures three products from a common input in a joint processing operation. Joint processing costs up to the split off point total $98,000 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 4 per pound 7 per und 14 per gallon Quarterly Output 10,000 pounds 22,000 pounds 5,000 gallons B C $ 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 A $ 53,000 $ 7 per pound B $ 38,000 $ 10 per pound C $ 18,000 $ 18 per gallon Which products should be processed further? Multiple Choice A, B, and A and c Band C A and B
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