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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 $186,000. Additional
The following questions relate to Kyle Company, which manufactures products KA, KB, and KC from a joint process. Joint product costs were $186,000. Additional information follows. Product Units Produced KA 67,000 KB 73,000 KC 37,000 Sales Value at Split-Off $370,000 340,000 280,000 If Processed Further Sales Values $460,000 400,000 370,000 Additional Costs $67,000 55,000 43,000 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 $192,000 for every 37,000 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 Required A Required B
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