Question

James and Johnson produce two products from a joint process. Data from last month when $6,000...

James and Johnson produce two products from a joint process. Data from last month when $6,000 of joint costs were incurred are as follows:#1#2#3Units produced 1,000 1,500 1,800 Selling price at split-off point $ 8 $ 5 $ 6 Selling price if processed further $ 14 $ 11 $ 10 Additional processing costs $ 8,000 $ 7,000 $ 7,000 Prepare a schedule that shows which products should be sold at the split-off point and which should be sold after further processing. Indicate your decision for each product.

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Answer #1

Produt B & C should be processed Further.

Product A should be sold at split off.

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