question 6

The following questions relate to Kyle Company, which manufactures products KA, KB, and KC from a joint process. Joint product costs were $179,000. Additional information follows: If Processed Further Product KA KB KC Units Produced 78,000 80,000 44.000 Sales Value at Spit om $440,000 410,000 350,000 Sales Values $530,000 480.000 440,000 Additional Costs $74,000 62.000 50,000 After the publication of recent scientific test results, the government has banned the sale of product KC. IF KC is produced, I must be disposed of in an approved way that costs $211,000 for every 44,000 units produced Required: a. Assuming that Kyle Company continues to use the physical quantities method of allocation, what joint costs will be allocated to KA and to KB, respectively? (Do not round intermediate calculations.) Joint costs Product KA KB b. Which, if either, product would you recommend Kyle Company sell at split-off? KB None of the above