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Information About Three Joint Products Follows The Cost of the Joint Process Is £60,000

Question 31

Multiple Choice

Information about three joint products follows: ABC Anticipated production 5,000kgs.1,000kgs.2,000kgs Selling price /kg. at split-off £10£30£16 Additional processing costs /kg. after split-off (all variable)  £6£12£24 Selling price/kg. after further  processing £20£40£50\begin{array}{lccc}&A&B&C\\\text { Anticipated production } & 5,000 \mathrm{kgs} . & 1,000 \mathrm{kgs} . & 2,000 \mathrm{kgs} \\\text { Selling price } / \mathrm{kg} . \text { at split-off } & £ 10 & £ 30 & £ 16 \\\text { Additional processing costs } / \mathrm{kg} . & &\\\text { after split-off (all variable) } & £ 6 & £ 12 & £ 24 \\\text { Selling price/kg. after further } & & & \\\text { processing } & £ 20 & £ 40 & £ 50\end{array} The cost of the joint process is £60,000. Which of the joint products should be sold at split-off?


A) A
B) B
C) C
D) both A and B

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