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Beets 'R' Us processes sugar beets in batches that it purchases from farmers for $57 a batch. A batch of sugar beets costs $12 to crush in the company's plant. Two intermediate products, beet fiber and beet juice, emerge from the crushing process. The beet fiber can be sold as is for $28 or processed further for $17 to make the end product industrial fiber that is sold for $67. The beet juice can be sold as is for $39 or processed further for $24 to make the end product refined sugar that is sold for $54. Which of the intermediate products should be processed further?
Select one:
a. beet fiber should be processed into industrial fiber; beet juice should be processed into refined sugar
b. beet fiber should be processed into industrial fiber; beet juice should NOT be processed into refined sugar
c. beet fiber should NOT be processed into industrial fiber; beet juice should be processed into refined sugar
d. beet fiber should NOT be processed into industrial fiber; beet juice should NOT be processed into refined sugar
Baker Corporation uses the weighted-average method in its process costing system. The Assembly Department started the month with 13,600 units in its beginning work in process inventory that were 90% complete with respect to conversion costs.
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