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ompany manufactures three products from a common input in a Jullll pluLuSSing operation. Joint processing costs up to the splitoff point total $75,000 per quarter.
ompany manufactures three products from a common input in a Jullll pluLuSSing operation. Joint processing costs up to the splitoff point total $75,000 per quarter. The company allocates these costs to the joint products on the basis of their relative sales value at the splitoff point. Unit selling prices and total output at the splitci'f point are as follows: Product Selling Price Quarterly Output A $ 3 per pound 10,000 pounds B if: 6 per pound 22,000 pounds C $ 12 per gallon 5,000 gallons Each product can be processed further after the splitc 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 $ 7per pound E $ 38,000 $ 11 per pound C $ 18,000 $ 20 per gallon Which products should be processed further
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