2C2O JONES ENTERPRISES MANUFACTURES 3 PRODUCTS, A, B, AND C. DURING...
248.
CSO: 2C2e
LOS: 2C2o
Jones Enterprises manufactures 3 products, A, B, and C. During the month of May
Jones’ production, costs, and sales data were as follows.
Products
A
B
C
Totals
Units of production
30,000
20,000
70,000
120,000
Joint production costs
to split-off point
$480,000
Further processing costs
$ -
$60,000 $140,000
Unit sales price
At split-off
3.75
5.50
10.25
After further processing
-
8.00
12.50
Based on the above information, which one of the following alternatives should be
recommended to Jones’ management?
a.
Sell both Product B and Product C at the split-off point.
b.
Process Product B further but sell Product C at the split-off point.
c.
Process Product C further but sell Product B at the split-off point.
d.
Process both Products B and C further.