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SELLORP-201 company manufactures three products from a common input in a joint processing operation. Joint processing costs up to the split-off point total $98,000 per
SELLORP-201 company manufactures three products from a common input in a joint processing operation. Joint processing costs up to the split-off point total $98,000 per quarter. The company allocates these costs to the joint products on the basis of their relative sales value at the split-off point. Unit selling prices and total output at the split-off point are as follows: Product A B $ $ $ Selling Price 4 per pound 7 per pound 12 per gallon Quarterly Output 10,000 pounds 22,000 pounds 5,000 gallons C Each product can be processed further after the split-off point. Additional processing requires no special facilities. The additional processing costs (per quarter) and unit selling prices after further processing are given below: Additional Product Processing Costs Selling Price $ 53,000 $ 6 per pound $ 38,000 $ 13 per pound $ 18,000 $ 19 per gallon A B Which products should be processed further
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