Els Corporation has a joint process that produces two products: A and B. Each product may be sold at the split- off point or processed further and then sold. Joint processing costs for a year amount to $25,000.
Product A can be sold at the split- off point for $32,000. Alternately, product A can be processed further and sold for $40,000. Additional processing costs are $5,000.
In deciding whether to sell product A at the split- off point or to process further, the is not relevant.
A) sales value at split- off of $32,000
B) joint processing cost of $25,000
C) sales value at completion of $40,000
D) All of these answers are relevant.
Correct Answer:
Verified
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