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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 $189,000. Additional
The following questions relate to Kyle Company, which manufactures products KA, KB, and KC from a joint process. Joint product costs were $189,000. Additional information follows. If Processed Further Sales Values Additional Costs Units Sales Value at Product Produced Split-Off KA 84,000 $240,000 $330,000 KB KC 60,000 210,000 270,000 24,000 150,000 240,000 $54,000 42,000 30,000 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 $171,000 for every 24,000 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? b. Which, if either, product would you recommend Kyle Company sell at split-off? Complete this question by entering your answers in the tabs below. Required A Required B 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.) Product Joint costs KA KB
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