Woods Corporation Has a Joint Process That Produces Three Products

question 35

Multiple Choice

Woods Corporation has a joint process that produces three products: P, G, and A. Each product may be sold at split- off or processed further and then sold. Joint processing costs for a year amount to $25,000. Other relevant data are as follows: $\begin{array}{llll}&&\text { Separable }\\&&\text { Processing }\\\text { Product } & \begin{array}{l}\text { Sales Value at } \\\text { Split-off }\end{array} & \begin{array}{l}\text { Costs after } \\\text { Split-off }\end{array} & \begin{array}{l}\text { Sales Value at } \\\text { Completion }\end{array}\\\mathrm{P} & \$ 32,000 & \$ 5,000 & \$ 88,000 \\\mathrm{G} & 12,500 & 6,500 & 19,000 \\\mathrm{~A} & 9,400 & 5,000 & 12,000\end{array}$ Product G:

• A) should be processed further to increase profits by $6,500
• B) can be processed further or sold at split- off; there is no difference in profit.
• C) should be sold at split- off since processing further would only reduce profits by $6,500
• D) should be processed further to increase profits by $19,000

---

Definitions:

Whole Grain

Grain that contains all parts of the seed (bran, germ, and endosperm), providing more nutrients and fiber compared to refined grains.

Resting Metabolic Rate

The amount of energy expended per unit time by a person at rest, determining how many calories you burn while at rest.

Primary Influence

The initial or most direct factor that affects or shapes outcomes.

Body Composition

The ratio of body fat to lean body mass, including muscles, bones, and organs, which is a key indicator of health and fitness levels.