Els Corporation Has a Joint Process That Produces Two Products

question 88

Multiple Choice

Els Corporation has a joint process that produces two products: A and B. Each product may be sold at the split- off point or processed further and then sold. Joint processing costs for a year amount to $25,000.
Product A can be sold at the split- off point for $32,000. Alternately, product A can be processed further and sold for $40,000. Additional processing costs are $5,000.
In deciding whether to sell product A at the split- off point or to process further, the is not relevant.

• A) sales value at split- off of $32,000
• B) joint processing cost of $25,000
• C) sales value at completion of $40,000
• D) All of these answers are relevant.

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Definitions:

Aggregate Planning

A process in operations management aimed at determining the optimal production levels, inventory, and workforce to meet expected demand over a medium-term horizon.

Master Schedule

A detailed plan that outlines the production activities, timelines, and resources needed to manufacture a product.

Short-Term Schedule

A plan that outlines specific tasks or activities to be completed within a relatively brief period, typically ranging from days to a few weeks.

Swap Employees

The process of exchanging employees between departments or roles to improve skill versatility or address staffing needs.