Figure 6-8
James Ltd $\begin{array}{lr}\text { Direct materials } & £ 50,000 \\\text { Direct labour } & 20,000 \\\text { Overhead } & 40,000\end{array}$

question 13

Multiple Choice

Figure 6-8
James Ltd. produces three products in a joint process: A, B, and C. The joint costs are as follows: $\begin{array}{lr}\text { Direct materials } & £ 50,000 \\\text { Direct labour } & 20,000 \\\text { Overhead } & 40,000\end{array}$ The split-off values for A, B, and C are £80,000, £100,000, and £60,000, respectively. If management processes the three products beyond the split-off point, sales values for A, B, and C would increase to £150,000, £130,000, and £120,000, respectively. In order to process the products further, the company must incur separable costs of £14,000, £12,000, and £10,000 for products A, B, and C, respectively. James uses the sales-value-at-split-off method to allocate joint costs.
-Refer to Figure 6-8. Should James Ltd. process A further?

• A)Process further; profits will increase £56,000.
• B)Sell now.
• C)Process further; profits will increase £70,000.
• D)Process further; profits will increase £136,000.

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Definitions:

Contact Precautions

Safeguards designed to reduce the risk of transmission of epidemiologically important microorganisms by direct or indirect contact.

Disease Spread

The process by which an illness is transmitted from one individual to another, through direct contact, airborne particles, or other means.

Dedicated Blood Pressure Cuff

A blood pressure cuff designated for a specific patient or device, ensuring it is not used interchangeably and minimizes cross-contamination.

Clostridium Difficile

A bacterium that can cause symptoms ranging from diarrhea to life-threatening inflammation of the colon, often associated with antibiotic use.