Question
Joint Costs 4. The Kirsten Company uses a joint process to produce products A, B, C, and D. Each product may be sold at its
Joint Costs
4. The Kirsten Company uses a joint process to produce products A, B, C, and D. Each product may be sold at its split-off point or processed further. Joint processing costs for a single batch of joint products are $65,000. Other relevant data are as follows:
| Product | Sales Value At Split-Off | Additional Costs of Processing | Sales Value of Final Product |
| A | $15,000 | $18,000 | $ 45,000 |
| B | 27,000 | 15,000 | 40,000 |
| C | 20,000 | 25,000 | 30,000 |
| D | 13,000 | 11,000 | 25,000 |
|
| $75,000 | $69,000 | $140,000 |
Calculate the effect on profits of processing Product A further beyond the split-off point.
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