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Information About Three Joint Products Follows: the Cost of the Joint

Question 36

Multiple Choice

Information about three joint products follows: The cost of the joint process is $60,000.Which of the joint products should be sold at split-off?
ABC Anticipated production 5,000 kg1,000 kg2,000 kg Selling price/kg at split-off $10$30$16 Additional processing costs/kg after split-off  (all variable)  $6$12$24 Selling price/kg after further processing $20$40$50\begin{array} { l r r r } &A&B&C\\\text { Anticipated production } & 5,000 \mathrm {~kg} & 1,000 \mathrm {~kg} & 2,000 \mathrm {~kg} \\\text { Selling price/kg at split-off } & \$ 10 & \$ 30 & \$ 16 \\\text { Additional processing costs/kg after split-off } & & & \\\quad \text { (all variable) } & \$ 6 & \$ 12 & \$ 24 \\\text { Selling price/kg after further processing } & \$ 20 & \$ 40 & \$ 50\end{array}


A) joint product A
B) joint product B
C) joint product C
D) none of the joint products

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