Stars Unlimited produces four products through a joint process that incurs costs of $150,000. Information for these products is as follows: Which, if any, products should be processed further?
A)All products should be processed further.
B)Gemini and Taurus should be processed further.
C)Gemini, Virgo, and Leo should be processed further.
D)Gemini, Taurus, and Leo should be processed further.

Question

Stars Unlimited produces four products through a joint process that incurs costs of $150,000. Information for these products is as follows:  Which, if any, products should be processed further?
A)All products should be processed further. 
B)Gemini and Taurus should be processed further. 
C)Gemini, Virgo, and Leo should be processed further. 
D)Gemini, Taurus, and Leo should be processed further.

Quizplus · Accepted Answer

Gemini - $15,000 - $10,000 - $2,500 = $2,500 increase (process further) 
Taurus - $35,000 - $30,000 - $3,000 = $2,000 increase (process further) 
Leo - $25,000 - $20,000 - $4,000 = $1,000 increase (process further) 
Virgo - $45,000 - $40,000 - $6,000 = $1,000 decrease (sell as is) 
final sales value - sales at split-off - further processing costs = increase (decrease)

Stars Unlimited Produces Four Products Through a Joint Process That