Iaukea company makes two products from a common input joint

Reference no: EM13577745

Iaukea Company makes two products from a common input. Joint processing costs up to the split-off point total $48,600 a year. The company allocates these costs to the joint products on the basis of their total sales values at the split-off point. Each product may be sold at the split-off point or processed further. Data concerning these products appear below:

	Product X		Product Y		Total
Allocated joint processing costs	$	18,800	$	29,800	$	48,600
Sales value at split-off point	$	25,850	$	37,800	$	63,650
Costs of further processing	$	23,300	$	17,600	$	40,900
Sales value after further processing	$	48,800	$	56,500	$	105,300

Reference no: EM13577745

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