Reference no: EM132510833

Benjamin Signal Company produces products R, J, and C from a joint production process. Each product may be sold at the split-off point or be processed further. Joint production costs of $92,000 per year are allocated to the products based on the relative number of units produced.

Data for Benjamin's operations for the current year are as follows:

Units         Allocated Joint     Sales Value

Product          Produced         Production Cost        At Split-off

R                   8,000            $32,000                    $76,000

J                10,000              40,000                      71,000

C                  5,000                 20,000                   48,000

• Product R can be processed beyond the split-off point for an additional cost of $26,000 and can then be sold for $105,000. Product J can be processed beyond the split-off point for an additional cost of $38,000 and can then be sold for $117,000. Product C can be processed beyond the split-off point for an additional cost of $12,000 and can then be sold for $57,000.

Required:

Question 1: Which products should be processed beyond the split-off point?