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:

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

Question

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

Quizplus · Accepted Answer

The Answer of 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:
 
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:
Which products should be processed beyond the split-off point?

Benjamin Signal Company Produces Products R,J,and C from a Joint