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Riley Company Riley Company Produces Two Products from a Joint Process: a Process

Question 101

Multiple Choice

Riley Company
Riley Company produces two products from a joint process: A and C.Joint processing costs for this production cycle are $9,000.

    Yards   Sales price per yard at split-off Disposal cost per yard at split-off   Further processing per yard     Final sale price per yard
 A  1,800  $7.00  $4.50  $1.50  $ 8.00
 C  2,600   10.00   6.00   3.50   12.25

If A and C are processed further,no disposal costs will be incurred or such costs will be borne by the buyer.
Refer to Riley Company.Which products would be processed further?


A) only Product A
B) only Product C
C) both Products A and C
D) neither Product A or C

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