Skinner Company produced three joint products at a joint cost of $100,000. These products were processed further and sold as follows:
The company has had an opportunity to sell at split-off directly to other processors. If that alternative had been selected, sales would have been: A, $56,000; B, $28,000; and C, $56,000.
The company expects to operate at the same level of production and sales in the forthcoming year.
Required: Consider all the available information and assume that all costs incurred after split-off are variable.

Question

Skinner Company produced three joint products at a joint cost of $100,000. These products were processed further and sold as follows:
  The company has had an opportunity to sell at split-off directly to other processors. If that alternative had been selected, sales would have been: A, $56,000; B, $28,000; and C, $56,000.
The company expects to operate at the same level of production and sales in the forthcoming year.
Required: Consider all the available information and assume that all costs incurred after split-off are variable.

Quizplus · Accepted Answer

The Answer of Skinner Company produced three joint products at a joint cost of $100,000. These products were processed further and sold as follows:
  The company has had an opportunity to sell at split-off directly to other processors. If that alternative had been selected, sales would have been: A, $56,000; B, $28,000; and C, $56,000.
The company expects to operate at the same level of production and sales in the forthcoming year.
Required: Consider all the available information and assume that all costs incurred after split-off are variable.

Skinner Company Produced Three Joint Products at a Joint Cost