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 Product ABU А ABC 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 $ $ $ O Multiple Choice $ $ $ Which products should be processed further? B and C A, B, and C Selling Price A and B 4 per pound 7 per pound 11 per gallon Selling Price $ 6 per pound $ 10 per pound $ 19 per gallon Quarterly Output 10,000 pounds 22,000 pounds 5.000 gallons
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 Product ABU А ABC 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 $ $ $ O Multiple Choice $ $ $ Which products should be processed further? B and C A, B, and C Selling Price A and B 4 per pound 7 per pound 11 per gallon Selling Price $ 6 per pound $ 10 per pound $ 19 per gallon Quarterly Output 10,000 pounds 22,000 pounds 5.000 gallons
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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