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Assume a company has three products-A, B, and C-that emerge from a joint process. The joint processing costs that are incurred up to the split-off point equal $1,270,000. The selling prices and outputs for each product at the split-off point are as follows: Product Selling Price Output A $ 33 $29 $24 B C per pound 14,000 pounds per pound 18,000 pounds per pound 19,000 pounds

Assume a company has three products-A, B, and C-that emerge from a joint process. The joint processing costs that are incurred up to the split-off point equal $1,270,000. The selling prices and outputs for each product at the split-off point are as follows: Product Selling Price Output A $ 33 $29 $24 B C per pound 14,000 pounds per pound 18,000 pounds per pound 19,000 pounds

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Assume a company has three products-A, B, and C-that emerge from a joint process. The joint processing costs that are incurred up to the split-off point equal $1,270,000. The selling prices and outputs for each product at the split-off point are as follows: Product Selling Price Output A $ 33 $ 29 C $24 B per pound 14,000 pounds per pound 18,000 pounds per pound 19,000 pounds Each product can be processed further beyond the split-off point. The additional processing costs for each product and their respective selling prices after further processing are as follows: Product Additional Processing Costs Selling Price A $ 65,000 $37 $ 72,000 $34 $ 88,000 $30 B с per pound per pound per pound The company is trying to decide whether to retain or discontinue the entire joint manufacturing process. What is the financial advantage (disadvantage) of continuing to operate the entire joint manufacturing process?
Transcribed Image Text:Assume a company has three products-A, B, and C-that emerge from a joint process. The joint processing costs that are incurred up to the split-off point equal $1,270,000. The selling prices and outputs for each product at the split-off point are as follows: Product Selling Price Output A $ 33 $ 29 C $24 B per pound 14,000 pounds per pound 18,000 pounds per pound 19,000 pounds Each product can be processed further beyond the split-off point. The additional processing costs for each product and their respective selling prices after further processing are as follows: Product Additional Processing Costs Selling Price A $ 65,000 $37 $ 72,000 $34 $ 88,000 $30 B с per pound per pound per pound The company is trying to decide whether to retain or discontinue the entire joint manufacturing process. What is the financial advantage (disadvantage) of continuing to operate the entire joint manufacturing process?
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