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Required information [The following information applies to the questions displayed below.] Each of the following situations is independent: Profit from Processing Further Deaton Corporation manufactures
Required information [The following information applies to the questions displayed below.] Each of the following situations is independent: 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 A 22,800 $ 273,600 456,000 53,200 532,000 B 15,200 $ 114,000 190,000 38,000 228,000 7,600 $ 68,400 114,000 22,800 133,000 Total 45,600 $ 456,000 760,000 114,000 893,000 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.) A B C Differential benefit (loss)
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