Determine which product KLP Co. should sell at the split-off point and which product KLP Co. should process further.

Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
Chapter10: Short-term Decision Making
Section: Chapter Questions
Problem 10PA: Clarion Industries produces two joint products, Y and Z. Prior to the split-off point, the company...
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Accounting

Question 7

 

KLP Products Co. produces 2 joint products. Joint cost = $2,000. These products can be processed further after split – off point. Data for the current period are:

 

Products Sales value At split - off Separable costs Final Sales value after further Processing

D $1,000 $2,000 $3, 800

E $200 $600 $700

 

Required:

 

Determine which product KLP Co. should sell at the split-off point and which product KLP Co. should process further.

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