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In a joint process, 20,000 gallons of A is processed into 14,000 gallons of B and 6,000 gallons of C. The Joint process costs are
In a joint process, 20,000 gallons of A is processed into 14,000 gallons of B and 6,000 gallons of C. The Joint process costs are $38,000. Given the following data, should be processed further, and why or why not? Allocated joint process costs Sales price per gallon at split-off point Variable cost to process further Sales price per gallon after further processing $26,600 $ 0.85 $52,000 $ 4.60 $11,400 $ 1.25 $ 6,600 $ 2.20 Multiple Choice 0 No. should not be processed further because the net loss is $6,600. ) Yes, C should be processed further because the net benefit is $6,600. O No. C should not be processed further because the net loss is $18,000. 0 Yes. C should be processed further because the net benefit is $14,100. 0 None of the answers is correct
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