FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Assume a company has three products-A, B and C-that emerge from a joint process. The selling prices and outputs for each product at the split-off point are as follows:
Output
Selling Price:
$ 33 per pound
$ 29 per pound
14,000 pounds
18,000 pounds
$24 per pound
19,000 pounds
Product
B
C
Each product can be processed further beyond the split off point. The additional processing costs for each product and their respective selling prices after further
processing are as follows
Additional
Processing
Costs
Product
A
U
C
Selling Price
$ 37 per pound
3 34 per pound
$30 per pound
What is financial advantage (disadvantage) of further processing Product B?
$ 65,000
$ 79,000
$ 70,000
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Transcribed Image Text:Assume a company has three products-A, B and C-that emerge from a joint process. The selling prices and outputs for each product at the split-off point are as follows: Output Selling Price: $ 33 per pound $ 29 per pound 14,000 pounds 18,000 pounds $24 per pound 19,000 pounds Product B C Each product can be processed further beyond the split off point. The additional processing costs for each product and their respective selling prices after further processing are as follows Additional Processing Costs Product A U C Selling Price $ 37 per pound 3 34 per pound $30 per pound What is financial advantage (disadvantage) of further processing Product B? $ 65,000 $ 79,000 $ 70,000
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