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 $ 4 per pound B $ 7 per pound 22,000 pounds с $ 12 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 A $ 53,000 $ B $ 38,000 $ с $ 18,000 $ Which products should be processed further? 7 per pound 11 per pound 18 per gallon
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 $ 4 per pound B $ 7 per pound 22,000 pounds с $ 12 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 A $ 53,000 $ B $ 38,000 $ с $ 18,000 $ Which products should be processed further? 7 per pound 11 per pound 18 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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![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
4 per pound
B
7 per pound
22,000 pounds
5,000 gallons
12 per gallon
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
A
$
$
53,000
38,000
B
$
$
с
$ 18,000
$
Which products should be processed further?
7 per pound
11 per pound
18 per gallon](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F68e1928e-0b26-44c3-8674-81d02ae0cec4%2Fe0ece309-e235-45d7-bed2-c1b51d12f795%2Fyah3og_processed.png&w=3840&q=75)
Transcribed Image Text: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
4 per pound
B
7 per pound
22,000 pounds
5,000 gallons
12 per gallon
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
A
$
$
53,000
38,000
B
$
$
с
$ 18,000
$
Which products should be processed further?
7 per pound
11 per pound
18 per gallon
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