Determine which product KLP Co. should sell at the split-off point and which product KLP Co. should process further.
Determine which product KLP Co. should sell at the split-off point and which product KLP Co. should process further.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Accounting
Question 7
KLP Products Co. produces 2 joint products. Joint cost = $2,000. These products can be processed further after split – off point. Data for the current period are:
Products Sales value At split - off Separable costs Final Sales value after further Processing
D $1,000 $2,000 $3, 800
E $200 $600 $700
Required:
Determine which product KLP Co. should sell at the split-off point and which product KLP Co. should process further.
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