Wright company produces products i j and k from a single


Wright Company produces products I, J, and K from a single raw material input. Budgeted data for the next month follows:

 

Product I

Product J

Product K

  Units produced

2,100      

2,600      

3,600     

  Per unit sales value at split-off

$19      

$25      

$21     

  Added processing costs per unit

$2      

$4      

$4     

  Per unit sales value if processed further

$26      

$26      

$31     

 

If the cost of the raw material input is $74,000, which of the products should be processed beyond the split-off point?

 

 

Product I

Product J

Product K

  A)

yes

yes

no

  B)

yes

no

yes

  C)

no

yes

no

  D)

no

yes

yes

Option B

Option C

Option D

Option A

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Financial Accounting: Wright company produces products i j and k from a single
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