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A company manufactures three products using the same production process. The costs incurred up to the spillt-off point a
Posted: Sun Jul 03, 2022 1:16 pm
by answerhappygod
- A Company Manufactures Three Products Using The Same Production Process The Costs Incurred Up To The Spillt Off Point A 1 (35.39 KiB) Viewed 12 times
A
company manufactures three products using the same production process. The costs incurred up to the spillt-off point are $244,000. These costs are allocated to the products on the basis of their sales value at the split-off point. The number of units produced, the selling prices per unit of the three products at the split-off point and after further processing, and the additional processing costs are as follow: Product (a) X Z Number of Units Produced 6,100 12,200 4,880 Selling Price at Split-off $9.00 11.30 19.10 Selling Price after Processing $14.00 15.90 should be processed further but 21.30 Additional Processing Costs $17,080 25,620 14,640 Which product(s) should be processed further and which should be sold at the split-off point? âś“should be sold at the split-off point.