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 $ 7 per pound 22,000 pounds C $ 11 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 $ с $ 18,000 $ Which products should be processed further? 8 per pound 13 per pound 20 per gallon

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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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
5 per pound
Quarterly Output
10,000 pounds
A
$
B
$
7 per pound
22,000 pounds
C
$
11 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
$ 8 per pound
B
$
38,000
$
13 per pound
с
$
18,000
$
20 per gallon
Which products should be processed further?
Transcribed Image Text: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 5 per pound Quarterly Output 10,000 pounds A $ B $ 7 per pound 22,000 pounds C $ 11 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 $ 8 per pound B $ 38,000 $ 13 per pound с $ 18,000 $ 20 per gallon Which products should be processed further?
Multiple Choice
A, B, and C
B and C
A and B
A and C
Transcribed Image Text:Multiple Choice A, B, and C B and C A and B A and C
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