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Pajotan Company manufactures three products from a common input in a joint processing operation. Cost incurred from the beginning of the process to the split-off point is P100,000 per year. Sales for the year were Paj P50,000; Jot P90,000 and Tan P60,000.
Each product may be sold at the split-off point or processed further. Additional processing requires no special facilities. The additional processing costs and sales value after further processing are Paj P35,000 and P80,000; Jot P40,000 and P150,000 and Tan P121,000 and P75,000.
Problem a. Which product product(s) shall be sold at split-off and which shall be sold after processing further? Show computation.
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