CUIK-523 company manufactures three products from a common input in a joint processing operation. Joint processing costs up to the split-off point total $75,000 per quarter. The company allocates these costs to the joint products on the basis of their relative sales value at the split-off point. Unit selling prices and total output at the split-off point are as follows: Product A 8 с $ $ $ Additional Selling Price 3 per pound 7 per pound 12 per gallon Quarterly Output 10,000 pounds 22,000 pounds 5,000 gallons Each product can be processed further after the split-off point. Additional processing requires no special facilities. The additional processing costs (per quarter) and unit selling prices after further processing are given below:

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CUIK-523 company manufactures three products from a common input in a joint processing operation.
Joint processing costs up to the spilt-off point total $75,000 per quarter. The company allocates these
costs to the joint products on the basis of their relative sales value at the split-off point. Unit selling prices
and total output at the split-off point are as follows:
Product
A
8
Product
A
B
с
C
O
Each product can be processed further after the split-off point. Additional processing requires no
special facilities. The additional processing costs (per quarter) and unit selling prices after further
processing are given below:
O
Additional
Processing Costs
53,000
38,000
18,000
$
$
$
Multiple Choice
Which products should be processed further?
A and C
$
$
$
A and B
A, B, and C
Selling Price
B and C
3 per pound
7 per pound
12 per gallon
$
$
$
Selling Price
Quarterly Output
10,000 pounds
22,000 pounds
5,000 gallons
7 per pound
13 per pound
19 per gallon
Transcribed Image Text:CUIK-523 company manufactures three products from a common input in a joint processing operation. Joint processing costs up to the spilt-off point total $75,000 per quarter. The company allocates these costs to the joint products on the basis of their relative sales value at the split-off point. Unit selling prices and total output at the split-off point are as follows: Product A 8 Product A B с C O Each product can be processed further after the split-off point. Additional processing requires no special facilities. The additional processing costs (per quarter) and unit selling prices after further processing are given below: O Additional Processing Costs 53,000 38,000 18,000 $ $ $ Multiple Choice Which products should be processed further? A and C $ $ $ A and B A, B, and C Selling Price B and C 3 per pound 7 per pound 12 per gallon $ $ $ Selling Price Quarterly Output 10,000 pounds 22,000 pounds 5,000 gallons 7 per pound 13 per pound 19 per gallon
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