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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
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: Total Units produced Joint costs Sales value before additional processing Additional costs for further processing Sales value if processed further Required: A C 12,000 $144,000 8,000 $60,000 240,000 100,000 28,000 200,000 20,000 4,000 $ 36,000 60,000 12,000 24,000 $ 240,000 400,000 60,000 120,000 70,000 470,000 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? O Product A O Product B O Product C O None of the above O All of the above
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