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
Product	Units Produced	Sales Value at Split-Off			Sales Values			Additional Costs
KA	84,000	$	240,000		$	330,000		$	54,000
KB	60,000		210,000			270,000			42,000
KC	24,000		150,000			240,000			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?

Product	Joint Costs
KA
KB

b. Which, if either, product would you recommend Kyle Company sell at split-off?

	A) KA
	B) KB
	C) None of the above