Brockton Company produces products A, B, and C from a joint production process.

Question

Brockton Company produces products A, B, and C 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. Additional Sales Values and Costs if Processed Further Product Units Produced Sales Value At Split-off Sales Values Added Costs 6,000 9,000 4,000 75,000 S 80,000 S 48,000 $100,000 S 115,000 S58.000 $24,000 S25,000 S12,000 Which product(s) should be processed beyond the split-off point? Show ALL work!

Explanation / Answer

Products Sale Value at split off (A) (Sale Value after processing - Further Cost) (B) Decision A                               75,000.00 76000 sale after processing B                               80,000.00 90000 sale after processing C                               48,000.00 46000 before processiong

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