Information About Three Joint Products Follows The Cost of the Joint Process Is $140,000

question 125

Multiple Choice

Information about three joint products follows: $\begin{array}{lrrr}&A&B&C\\\text { Anticipated production } & 12,000 \mathrm{~kg} & 8,000 \mathrm{~kg} & 7,000 \mathrm{~kg} \\\text { Selling price/kg at split-off } & \$ 16 & \$ 26 & \$ 48 \\\text { Additional processing costs/kg after split-off } & & & \\\text { (all variable) } & \$ 8 & \$ 20 & \$ 20 \\\text { Selling price/kg after further processing } & \$ 20 & \$ 40 & \$ 70\end{array}$ The cost of the joint process is $140,000.Which of the joint products should be processed further?

• A) joint product A
• B) joint product B
• C) joint product C
• D) all joint products

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