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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 $181,000. Additional information
The following questions relate to Kyle Company, which manufactures products KA KB, and KC from a joint process. Joint product costs were $181,000. Additional information follows: If Processed Further Sales Value at Split-Off S 420,000 390,000 330,000 Additional Costs S72,000 60,000 48,000 Product KA KB KC Units Produced Sales Values S 510,000 450,000 420,000 74,000 78,000 42,000 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 $259,800 for every 42,000 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? (Do not round intermediate calculations.) Product Joint costs KA KB b. Which, if either, product would you recommend Kyle Company sell at split-ofr? O KA (0 O None of the above
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