Duiker Corporation has a joint process that produces three product: A, S and B.
ID: 2415474 • Letter: D
Question
Duiker Corporation has a joint process that produces three product: A, S and B. Each product may be sold at split-off or processed further and then sold. Joint-processing costs for the year amount to $30,000. Other data follows:
PRODUCT
SALES VALUE AT SPLIT-OFF
SEPARABLE PROCESSING COSTS AFTER SPLIT-OFF
SALES VALUE AT COMPLETION
A
$28,000
$4,500
$35,000
S
10,000
7,000
20,000
B
8,300
7,200
11,000
Processing Product A beyond the split-off point will cause profits to __________.
PRODUCT
SALES VALUE AT SPLIT-OFF
SEPARABLE PROCESSING COSTS AFTER SPLIT-OFF
SALES VALUE AT COMPLETION
A
$28,000
$4,500
$35,000
S
10,000
7,000
20,000
B
8,300
7,200
11,000
Explanation / Answer
Ans :
Processing Product A beyond the split-off point will cause profits to increasing
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