Subject :- Accounting 45CUIK-905 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 thesecosts to the joint products on the basis of their relative sales value at the split-off point. Unit selling pricesand total output at the split-off point are as follows:ProductABCProductABCAdditionalProcessing Costs$$53,00038,00018,000$$$$Selling PriceEach product can be processed further after the split-off point. Additional processing requires nospecial facilities. The additional processing costs (per quarter) and unit selling prices after furtherprocessing are given below.Multiple Choice$$$Which products should be processed further?5 per pound7 per pound11 per gallonSelling PriceQuarterly Output10,000 pounds22,000 pounds5,000 gallons8 per pound11 per pound20 per gallon 24Multiple ChoiceA and BA, B, and CB and CA and Cfurther?

Lets understand the basics. Management sometime needs to choose between whether to further process…

CUIK-905 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 B C Product А ABU C $ $ $ 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: Additional Processing Costs $ 53,000 $ 38,000 $ 18,000 Selling Price $ $ 5 per pound 7 per pound 11 per gallon Which products should be processed further? Selling Price Quarterly Output 10,000 pounds 22,000 pounds 5,000 gallons 8 per pound 11 per pound 20 per gallon