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    Sold at split off point or processed further

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    Please see attached problem.

    Wallace Company produces two products from a common input. Data relating to the two products are given below:

    Product A Product B
    Sales value at the split off point.... $60,000 $120,000
    Allocated joint product costs... $45,000 $90,000
    Sales value after further processing... $90,000 $200,000
    Cost of further processing... $20,000 $85,000

    Determine which of the products should be sold at the split off point, and which should be processed further before sale. Use the form that appears below.

    Product A Product B
    Sales value after further processing... $________ $________
    Sales value at the split off point... _________ _________
    Incremental revenue from further processing... _________ _________
    Less cost of further processing... _________ _________
    Profit (loss) from further processing... $________ $________

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    https://brainmass.com/business/accounting/sold-at-split-off-point-or-processed-further-169079

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    Product A Product B
    Sales value after further processing... 90,000 200,000
    Sales value at ...

    Solution Summary

    The solution explains how to determine whether the products should be sold at split off point or processed further

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