Hello Please help with this question. Brockton Company produces products A, B, a

Question

Hello Please help with this question. Brockton Company produces products A, B, and C from a joint production process. Each product may be sold at split-off or processed further. Joint production costs have been allocated to each product based on the number of each produced. Product Units Produced Sales Value Additional Sales Values and Costs if At Split-off ________Processed Further_______ Sales Values Added Costs A 6,000 $ 75,000 $100,000 $24,000 B 9,000 $ 80,000 $ 115,000 $25,000 C 4,000 $ 48,000 $ 58,000 $12,000 Which product(s) should be processed beyond the split-off point?

Explanation / Answer

the following table will help us in knowing which product should be processed beyond split off point.

Products A and B should be further processed and product C should be sold at the split off point.

A B C Sale value after further processing $100,000 $115,000 $58,000 less:sale value at split off $75,000 $80,000 $48,000 Additon to sale value $25,000 $35,000 $10,000 less: further processing cost $24,000 $25,000 $12,000 Net profit (loss) from further processing $1,000 $10,000 ($2,000)

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