Benjamin Signal Company produces products R, J, C from a joint process. Each product may be sold at the split off point or be processed further. Joint production costs of $92,000 are allocated to the products based on the relative number of units produced. Data for the current year operations follow: Product Units Allocated Joint Sales Value at Produced Production Spit off Cost $ 32,000 $ 40,000 $ 20,000 $ 76,000 $ 71,000 $ 48,000 8,000 10,000 5,000 Product R can be processed beyond the split off point for an additional cost of $26,000 and can then be sold for $105,000. Product J can be processed beyond the split off point for an additional $38,000 and then sold for $117,000. Product C can be processed beyond the split off point for an additional $12,000 and then sold for $57,000. Required: Which products should be processed beyond the split off point? Show your calculations.
Benjamin Signal Company produces products R, J, C from a joint process. Each product may be sold at the split off point or be processed further. Joint production costs of $92,000 are allocated to the products based on the relative number of units produced. Data for the current year operations follow: Product Units Allocated Joint Sales Value at Produced Production Spit off Cost $ 32,000 $ 40,000 $ 20,000 $ 76,000 $ 71,000 $ 48,000 8,000 10,000 5,000 Product R can be processed beyond the split off point for an additional cost of $26,000 and can then be sold for $105,000. Product J can be processed beyond the split off point for an additional $38,000 and then sold for $117,000. Product C can be processed beyond the split off point for an additional $12,000 and then sold for $57,000. Required: Which products should be processed beyond the split off point? Show your calculations.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
![Benjamin Signal Company produces products R, J, C from a joint process. Each product may be
sold at the split off point or be processed further. Joint production costs of $92,000 are
allocated to the products based on the relative number of units produced.
Data for the current year operations follow:
Product
Units
Allocated Joint Sales Value at
Produced
Production
Spit off
Cost
$ 32,000
$ 40,000
$ 20,000
$ 76,000
$ 71,000
$ 48,000
R
8,000
10,000
5,000
Product R can be processed beyond the split off point for an additional cost of $26,000 and can
then be sold for $105,000. Product J can be processed beyond the split off point for an
additional $38,000 and then sold for $117,000. Product C can be processed beyond the split off
point for an additional $12,000 and then sold for $57,000.
Required:
Which products should be processed beyond the split off point? Show your calculations.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F1e737409-eec5-42d1-a7be-63abeb3acf8d%2Fe7716335-e9fe-420b-af07-7a6d34a5ed52%2Fwe8wwh_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Benjamin Signal Company produces products R, J, C from a joint process. Each product may be
sold at the split off point or be processed further. Joint production costs of $92,000 are
allocated to the products based on the relative number of units produced.
Data for the current year operations follow:
Product
Units
Allocated Joint Sales Value at
Produced
Production
Spit off
Cost
$ 32,000
$ 40,000
$ 20,000
$ 76,000
$ 71,000
$ 48,000
R
8,000
10,000
5,000
Product R can be processed beyond the split off point for an additional cost of $26,000 and can
then be sold for $105,000. Product J can be processed beyond the split off point for an
additional $38,000 and then sold for $117,000. Product C can be processed beyond the split off
point for an additional $12,000 and then sold for $57,000.
Required:
Which products should be processed beyond the split off point? Show your calculations.
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