Question
Harris company manufactures two products, CC and DD, from a joint process. A production run costs $20,000 and results in 500 units of CC and
Harris company manufactures two products, CC and DD, from a joint process. A production run costs $20,000 and results in 500 units of CC and 2000 units of DD. Both products must be processed past the split-off point, incurring separable cost for CC of $5 per unit and for DD of $10 per unit. The market price for CC is $25 and for BB is $20.
Required:
a) What is the total cost per unit for CC and DD assuming that joint costs are allocated using the net realizable value method? round to nearest cent
b) What is the total cost per unit for CC and DD assuming that joint costs are allocated using the physical units method? round answers to nearest cent
c) What is the total cost per unit for CC and DD assuming that joint costs are allocated using the final sales value method? round answers to nearest cent
d) If CC can be sold for $15 at split-off, should it be then or processed further? Just answers with numbers
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