Sealy Company has a joint process,which produces three products called A,B and C.Each product may be sold at split-off or processed further and then sold.Joint processing costs for a year are $20,000.Other relevant data are:
$\begin{array}{llll}
&\text { Sales Value }&\text {Separable Processing }&\text {Sales Value }\
\text {Product }&\text {at Split-Off}&\text {Costs after Split-Off }&\text { at Completion}\
A&\$ 94,000 & \$ 28,000 & \$ 115,000 \
B&60,000 & 10,000 & 82,000 \
C&66,000 & 14,000 & 79,000
\end{array}$
Required:
A) Which products should be processed further? Why?
B) If the Sealy Company maximizes profits, what is the operating income?

Question

Sealy Company has a joint process,which produces three products called A,B and C.Each product may be sold at split-off or processed further and then sold.Joint processing costs for a year are $20,000.Other relevant data are:
 $\begin{array}{llll}
&\text { Sales Value }&\text {Separable Processing }&\text {Sales Value }\
 \text {Product }&\text {at Split-Off}&\text {Costs after Split-Off }&\text { at Completion}\
A&\$ 94,000 & \$ 28,000 & \$ 115,000 \
B&60,000 & 10,000 & 82,000 \
C&66,000 & 14,000 & 79,000
\end{array}$ 
Required: 
A) Which products should be processed further? Why?
B) If the Sealy Company maximizes profits, what is the operating income?

Quizplus · Accepted Answer

The Answer of Sealy Company has a joint process,which produces three products called A,B and C.Each product may be sold at split-off or processed further and then sold.Joint processing costs for a year are $20,000.Other relevant data are:
 $\begin{array}{llll}
&\text { Sales Value }&\text {Separable Processing }&\text {Sales Value }\
 \text {Product }&\text {at Split-Off}&\text {Costs after Split-Off }&\text { at Completion}\
A&\$ 94,000 & \$ 28,000 & \$ 115,000 \
B&60,000 & 10,000 & 82,000 \
C&66,000 & 14,000 & 79,000
\end{array}$ 
Required: 
A) Which products should be processed further? Why?
B) If the Sealy Company maximizes profits, what is the operating income?

Sealy Company Has a Joint Process,which Produces Three Products Called