Question
jasmine corp has a joint process that produces three separate products: Product A, Product B and Product C. Each product may be sold at splitoff
jasmine corp has a joint process that produces three separate products: Product A, Product B and Product C.
Each product may be sold at splitoff or processed further and then sold. Joint processing costs for a year amount to $90,000.
Other relevant data are as follows:
Product Sales Value at Split-Off ($) Costs after Split-Off ($) Sales Value at Completion($)
A 60,000 110,000 190,000
B 15,000 50,000 35,000
C 55,000 125,000 215,000
Required:
a) Determine total net income if all products are sold at split-off point.
b) Determine total net income if all products are sold after processing.
c) Using incremental analysis determine which products in this division should be sold at split-off point and which should be processed further.
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