Information About Three Joint Products Follows The Cost of the Joint Process Is $60,000

question 2

Multiple Choice

Information about three joint products follows: $$\begin{array} { l c c c } & \underline { \mathrm { A } } & \underline { \mathrm { B } } & \underline { \mathrm { C } } \\\text { Anticipated production } & 5,000 \mathrm { lbs } & 1,000 \mathrm { lbs } . & 2,000 \mathrm { lbs } . \\\text { Selling price/lb. at split-off } & \$ 10 & \$ 30 & \$ 16 \\\text { Additional processing costs/lb. } & & & \\\text { after split-off (all variable) } & \$ 6 & \$ 12 & \$ 24 \\\text { Selling price/lb. after further } \\\text { processing } & \$ 20 & \$ 40 & \$ 50\\\end{array}$$ The cost of the joint process is $60,000. Which of the joint products should be sold at split-off?

• A)A
• B)B
• C)C
• D)both A and B