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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
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 Joint costs Sales value before additional processing Additional costs for further processing Sales value if processed further Required: Total 69,600 A 34,800 $ 417,600 B 23,200 $ 174,000 C 11,600 $ 104,400 696,000 81,200 812,000 290,000 58,000 348,000 174,000 34,800 203,000 $ 696,000 1,160,000 174,000 1,363,000 ces 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) B C 2b. Which, if any, of products A, B, and C should be processed further and then sold? O Product A Product B Product C None of the above O All of the above
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