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
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
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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