Which of the products should be processed further? A. Product 101 only B. Product 303 only C. Product 202 only D. Product 101 and 202
ABC Manufacturing Company makes three products that can either be sold or processed further and then sold. The cost associated with the Bacolod joint process is P240,000.
Units SP at split off Separable cost Final SP
101 15,000 6.00 2.00 8.50
202 20,000 4.00 1.00 6.00
303 25,000 4.00 1.75 5.50
Per unit, Product 101 weighs 3 ounces, Product 202 weighs 2 ounces, and Product 303 weighs 3 ounces.
Which of the products should be processed further?
A. Product 101 only
B. Product 303 only
C. Product 202 only
D. Product 101 and 202
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