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

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
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Chapter1: Financial Statements And Business Decisions
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Subject :- Accounting 

45
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
A
B
C
Additional
Processing Costs
$
$
53,000
38,000
18,000
$
$
$
$
Selling Price
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.
Multiple Choice
$
$
$
Which products should be processed further?
5 per pound
7 per pound
11 per gallon
Selling Price
Quarterly Output
10,000 pounds
22,000 pounds
5,000 gallons
8 per pound
11 per pound
20 per gallon
Transcribed Image Text:45 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 A B C Additional Processing Costs $ $ 53,000 38,000 18,000 $ $ $ $ Selling Price 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. Multiple Choice $ $ $ Which products should be processed further? 5 per pound 7 per pound 11 per gallon Selling Price Quarterly Output 10,000 pounds 22,000 pounds 5,000 gallons 8 per pound 11 per pound 20 per gallon
24
Multiple Choice
A and B
A, B, and C
B and C
A and C
further?
Transcribed Image Text:24 Multiple Choice A and B A, B, and C B and C A and C further?
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Decision to Sell before or after additional processing
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