Undertaker Corporation has a joint process that produces three products: - 6818

Solution Posted by
UoPExpert

UoPExpert

Rating : (2)F
Solution Detail
Price: $1.30
  • From: ,
  • Posted on: Fri 06 Apr, 2012
  • Request id: None
  • Purchased: 0 time(s)
  • Average Rating: No rating
Request Description

Undertaker Corporation has a joint process that produces three products: P, G, and A. Each product may be sold at split-off or processed further and then sold. Joint processing costs for a year amount to $25,000. Other relevant data are as follows: 

ProductSales Value at Split-offProcessing Costs after Split-offSales Value at Completion

P$62,000$5,000$88,000

G12,5006,50019,000

A9,4005,00012,000

 

 

Product G _____.

A.  should be sold at split off since processing further would only reduce profits by $6,500.

B.  should be processed further to increase profits by $6,500.

C.  should be processed further to increase profits by $19,000.

D.  an be processed further or sold at split off; there is no difference in profit.

Solution Description

Undertaker Corporation has a joint process that produces three products: P, G, and A. Each product may be sold at split-off or processed further and then sold. Joint processing costs for a year amount to $25,000. Other relevant data are as follows: 

              Product               Sales Value at Split-off           Processi