1.
Bowman Company produces products C, J, and R from a joint production process. Each product
may be sold at split-off or processed further. Joint production costs have been allocated to each
product based on the number of each produced.
Product Units Produced Sales Value At Split-off Additional Sales Values and Costs if Processed
Further
Sales Values Added Costs
C 6000 $ 75,000 $100,000 $20,000
J 9,000 $ 70,000 $ 115,000 $36,000
R 4,000 $ 46,500 $ 55,000 $10,000
Which product(s) should be processed beyond the split-off point?
Solution
Product C and R should be sold at the split off without any further processing . Product J
should be sold after further processing beyond the split-off point.