CUIK-983 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 Selling Price Quarterly Output А 5 per pound 10,000 pounds 6 per pound 22,000 pounds C 14 per gallon 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: Additional Processing Costs Product Selling Price $ 53,000 38,000 C $ 18,000 Which products should be processed further? Multiple Choice ABU А ABD В 555 555 $ 7 per pound $ 11 per pound $20 per gallon
CUIK-983 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 Selling Price Quarterly Output А 5 per pound 10,000 pounds 6 per pound 22,000 pounds C 14 per gallon 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: Additional Processing Costs Product Selling Price $ 53,000 38,000 C $ 18,000 Which products should be processed further? Multiple Choice ABU А ABD В 555 555 $ 7 per pound $ 11 per pound $20 per gallon
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter7: Allocating Costs Of Support Departments And Joint Products
Section: Chapter Questions
Problem 10CE: A company manufactures three products, L-Ten, Triol, and Pioze, from a joint process. Each...
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![CUIK-983 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
Selling Price
Quarterly Output
10,000 pounds
A
$
5 per pound
B
$
6 per pound
22,000 pounds
C
$
14 per gallon
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:
Additional
Product
Processing Costs
Selling Price
A
$
53,000
B
$
38,000
C
$
18,000
Which products should be processed further?
Multiple Choice
Multiple Choice
B and C
A and C
A, B, and C
A and B
$
7 per pound
$ 11 per pound
$20 per gallon](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F82822d36-839b-45cb-aa91-8fb7951a387e%2F099a9970-31df-4820-b545-e2016942a588%2Feg1jx1_processed.jpeg&w=3840&q=75)
Transcribed Image Text:CUIK-983 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
Selling Price
Quarterly Output
10,000 pounds
A
$
5 per pound
B
$
6 per pound
22,000 pounds
C
$
14 per gallon
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:
Additional
Product
Processing Costs
Selling Price
A
$
53,000
B
$
38,000
C
$
18,000
Which products should be processed further?
Multiple Choice
Multiple Choice
B and C
A and C
A, B, and C
A and B
$
7 per pound
$ 11 per pound
$20 per gallon
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