Dowchow Corporation makes two products from a common input.Joint processing costs up to the split-off point total $38, 400 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: What is the net monetary advantage (disadvantage)of processing Product X beyond the split-off point?
A)$1, 600
B)$22, 400
C)$27, 600
D)$(3, 600)

Question

Dowchow Corporation makes two products from a common input.Joint processing costs up to the split-off point total $38, 400 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:  What is the net monetary advantage (disadvantage)of processing Product X beyond the split-off point?
A)$1, 600 
B)$22, 400 
C)$27, 600 
D)$(3, 600)

Quizplus · Accepted Answer

The Answer of Dowchow Corporation makes two products from a common input.Joint processing costs up to the split-off point total $38, 400 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:  What is the net monetary advantage (disadvantage)of processing Product X beyond the split-off point?
A)$1, 600 
B)$22, 400 
C)$27, 600 
D)$(3, 600)

Dowchow Corporation Makes Two Products from a Common Input