Poppy George Corporation manufactures two products (007 008) from a joint process The two products can be sold at the split off point as intermediate grade products or processed further into premium grade products Costs related to each batch of production are as follows 007 Sales value at the split off point $16,000 Allocated joint costs $ 6,000 Sales value after further processing $20,000 Cost of further processing $ 5,000 008 $12,000 $ 6,000 $18,000 $ 3,000 For which product(s) would it be more profitable for Poppy George to sell at the split off point rather than process further O 007 only O 008 only O Both 007 008 Neither 007 or 008

Question

Poppy   George Corporation manufactures two products (007   008) from a joint process  The two products can be sold at the split off point as intermediate grade products or processed further into premium grade products  Costs related to each batch of production are as follows  007 Sales value at the split off point $16,000 Allocated joint costs $ 6,000 Sales value after further processing $20,000 Cost of further processing $ 5,000 008 $12,000 $ 6,000 $18,000 $ 3,000 For which product(s) would it be more profitable for Poppy   George to sell at the split off point rather than process further  O 007 only O 008 only O Both 007   008 Neither 007 or 008

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Poppy & George Corporation manufactures two products (007 & 008) from a joint process. The two products can be sold at the split-off point as

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