Which product should be processed beyond split-off point


Bowman Company produces products C, J, and R 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

C                    6,000                       $ 75,000                  $100,000                       $20,000

J                     9,000                       $ 70,000                  $ 115,000                      $36,000

R                    4,000                       $ 46,500                  $   55,000                      $10,000

Which product(s) should be processed beyond the split-off point?

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Accounting Basics: Which product should be processed beyond split-off point
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