Question
xyz makes three products A, B, and C from a joint process. The three products can either be sold as is at the split-off point
xyz makes three products A, B, and C from a joint process. The three products can either be sold as is at the split-off point or be further processed into premium products:
|
| A | B |
| C | |||||
| Sales value at split-off point | $ | 8,000 | $ | 6,000 | $ | 2,500 | |||
| Allocated joint costs | $ | 3,000 | $ | 3,000 | $ | 3,000 | |||
| Sales value after further processing | $ | 10,000 | $ | 9,000 | $ | 4,500 | |||
| Cost of further processing | $ | 2,500 | $ | 1,500 | $ | 1,000 | |||
Which product(s) above should Bothell process further rather than sell at the split-off point?
Multiple Choice
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B and C only
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A and C only
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C only
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A only
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Principles Of Cost Accounting
Authors: Edward J. Vanderbeck
15th Edition
978-0840037039, 0840037031
