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The following questions relate to Kyle Company, which manufactures products KA, KB, and KC from a joint process. Joint product costs were $188,000. Additional information
The following questions relate to Kyle Company, which manufactures products KA, KB, and KC from a joint process. Joint product costs were $188,000. Additional information follows: If Processed Further Product KA KB KC Units Produced 57,000 71.000 35,000 Sales Value at Split-Off $ 350,000 320,000 260,000 Sales Values $ 440,000 380,000 350,000 Additional Costs $65,000 53,000 41.000 After the publication of recent scientific test results, the government has banned the sale of product KC. IF KC is produced, it must be disposed of in an approved way that costs $183,200 for every 35,000 units produced Required: a. Assuming that Kyle Company continues use the physical quantities method of allocation, what joint costs will be allocated to KA and to KB, respectively? (Do not round intermediate calculations.) Product Joint costs KA KB b. Which, if either, product would you recommend Kyle Company sell at split-off? O KB O None of the above
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