Riley Company
Riley Company produces two products from a joint process: A and C.Joint processing costs for this production cycle are $9,000.
| Yards | Sales price per yard at split-off | Disposal cost per yard at split-off | Further processing per yard | Final sale price per yard | |
| A | 1,800 | $7.00 | $4.50 | $1.50 | $ 8.00 |
| C | 2,600 | 10.00 | 6.00 | 3.50 | 12.25 |
If A and C are processed further,no disposal costs will be incurred or such costs will be borne by the buyer.
Refer to Riley Company.Which products would be processed further?
A) only Product A
B) only Product C
C) both Products A and C
D) neither Product A or C
Correct Answer:
Verified
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