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Dutch, Inc. uses a joint process that costs $125,000 and results in two products: 4,000 gallons of Chemgo and 2,000 gallons of GoAssist. The Chemgo

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Dutch, Inc. uses a joint process that costs $125,000 and results in two products: 4,000 gallons of Chemgo and 2,000 gallons of GoAssist. The Chemgo can be sold as is for $60 per gallon or processed further into Super Chemgo for an additional processing cost of $50,000. The Super Chemgo can be sold for $100 per gallon. What is the financial advantage (disadvantage) to Dutch of processing Chemgo into Super Chemgo? a. ($225,000) b. (595,000) c. $30,000 d. $80,000 Jordan Corporation produces Products X and Y from a single input in a joint production process. Total joint processing costs are $200,000. Product x Product Y Units produced 2,000 2,500 Per unit sales value at split-off $ 38.00 52.00 Per unit sales value if processed further $ 55.00 70.00 Total costs to process further $ 20,000 $ 38,000 a. Based on the information above, which of the products should be processed further? Product X Product Y No No O. Product X Product Y Yes No Product X Product Y Yes Yes Product X Product Y No Yes d

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