Use the following to answer questions:
SimpsonSpring Corporation manufactures products J, K and L from a joint process. Additional information is as follows:

Total joint costs of $120,000 were incurred on the three products
-Without regard to your previous answers, assume that the joint costs allocated to product L were $20,000. Product L should be:
A) Sold at split-off
B) Processed further
C) Sold as a by-product
D) More information is needed before a decision can be made

Question

Use the following to answer questions:
SimpsonSpring Corporation manufactures products J, K and L from a joint process. Additional information is as follows:
  
Total joint costs of $120,000 were incurred on the three products
-Without regard to your previous answers, assume that the joint costs allocated to product L were $20,000. Product L should be:
A) Sold at split-off 
B) Processed further 
C) Sold as a by-product 
D) More information is needed before a decision can be made

Quizplus · Accepted Answer

Processing further will increase the value of Product L, making it more profitable to sell.

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