Company process beyond the splitoff point


Company produces three joint products. At the split offpoint three basic prodcuts emerge A,B, and C. each productcan be either sold at the split off point or be processedfurther. if they are processed further, the reultingproducts can be sold as a speciality. Cost and revenue infofollows:

                                                  Sales Value & Additional
                                                Costs if Processed Further

                             Pounds     Sales Value     FinalSales    Additonal
Product               produced     at split-off         value            cost

A........................9,000           $60,000        $90,000        $35,000
B........................4,000            80,000         160,000         50,000
C........................2,000            70,000          85,000         14,000

Which product should the company process beyond the splitoff point?

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Accounting Basics: Company process beyond the splitoff point
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