A Joint Input Costing $500 Results in Four Distinct Products

question 91

Multiple Choice

A joint input costing $500 results in four distinct products at the point of split-off. Relevant data follows: $\begin{array}{cccc}&\text { Sales Value } &\text {Separable} &\text {Sales Value After }\\\text { Product } &\text { at Split-Off } &\text { Cost } & \text { Further Processing }\\\text {J }& \$ 200 & \$ 100 & \$ 400 \\\text {K }& 300 & 200 & 600 \\\text {L }& 100 & 50 & 140 \\\text {M} & 20 & 10 & 40\end{array}$
Which of the four products should not be further processed?

• A) J
• B) K
• C) L
• D) M

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Definitions:

Cash Projections

Estimates of a company's future financial position based on expected cash inflows and outflows over a certain period.

Decision Making

The process of making choices by identifying a decision, gathering information, and assessing alternative resolutions.

Audit Log

A record that tracks the sequence of activities or changes in a system, often used for security and compliance purposes.

Transaction Journal

A detailed record showing all the financial transactions of a business, used for accounting and auditing purposes.