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Part d (Algo) Profit from Processing Further Deaton Corporation manufactures products A, B, and C from a joint process. Joint costs are allocated on the
Part d (Algo) Profit from Processing Further Deaton Corporation manufactures products A, B, and C from a joint process. Joint costs are allocated on the basis of relative sales value of the products at the split-off point. Additional information for Deaton Corporation follows: Units produced A 28,800 B C 19,200 Joint costs $ 345,600 $ 144,000 9,600 $ 86,400 Total 57,600 $ 576,000 sales value before additional processing Additional costs for further processing Sales value if processed further 576,000 67,200 672,000 240,000 48,000 288,000 144,000 28,800 168,000 960,000 144,000 1,128,000 Required: 2a. For each of the three products (A, B, and C), calculate the differential benefit (loss) from processing the product after the split-off point rather than selling the product at the split-off point. (Loss amounts should be indicated with a minus sign.) Differential benefit (loss) A B 2b. Which, if any, of products A, B, and C should be processed further and then sold? Product A Product B Product C None of the above All of the above
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