Which products should be processed beyond the split off

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Reference no: EM133269808

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

Data for the current year operations follow:

Product	Units Produced	Allocated Joint Production Cost	Sales Value at Spit 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 $38,000 and then sold for $117,000. Product C can be processed beyond the split off point for an additional $12,000 and then sold for $57,000.

Required:

Which products should be processed beyond the split off point? Show the calculations.

Reference no: EM133269808

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