Business, 17.04.2020 19:08 lawhornmakayla

Sentinel Inc. manufactures three products from a common input in a joint processing operation. Joint processing costs up to the split-off point total $50,000 per year. The company allocates these costs to the joint products on the basis of their total sales value at the split-off point. These sales values are as follows: Product X, $25,000; Product Y, $45,000; and Product Z, $30,000. Each product may be sold at the split-off point or processed further. The additional processing costs and the sales value after further processing for each product (on an annual basis) are as follows:

Product X Product Y Product Z
Additional processing costs $ 10,000 $ 32,000 $ 6,000
Sales value (after further processing) 40,000 75,000 37,000
Which of the product/s should the company be processing further?
a. Product X and Y

b. Product X

c. Products Y and Z

d. Product X and Z

Answers: 3

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Sentinel Inc. manufactures three products from a common input in a joint processing operation. Joint...

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