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

Question 38

Multiple Choice

Information about three joint products follows: ABC Anticipated production 12,000 kg8,000 kg7,000 kg Selling price/kg at split-off $16$26$48 Additional processing costs/kg after split-off  (all variable)  $8$20$20 Selling price/kg after further processing $20$40$70\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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