Question
Stowers Corporation manufactures products J, K, and L in a joint process. The company incurred $480,000 of joint processing costs during the period just ended
Stowers Corporation manufactures products J, K, and L in a joint process. The company incurred $480,000 of joint processing costs during the period just ended and had the following data that related to production: Sales values and additional cost if processed beyond split-off Product Sales Value at Further Processing Sales Value Split-off $ $400,000 $550,000 $130,000 K $350,000 $540,000 $240,000 L $850,000 $975,000 $118,000 If production of J totaled 40,000 gallons for the period, determine the relevant cost per gallon that should be used in decisions that explore whether to sell at the split-off point or process further
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