Question

Senatory Limited produces several products from processing krypton, a rare mineral. Material and processing costs total $30,000 per tonne; one-third of the costs are allocated to the product Castingard. The Castingard produced from a tonne of krypton can be either sold at the split- off point or processed further at a cost of $13,000 and then sold for $60,000. The sales value of Castingard at the split-off point is $50,000.
Required:
Should Castingard be processed further or sold at the split-off point?


$1.99
Sales1
Views74
Comments0
  • CreatedJuly 08, 2015
  • Files Included
Post your question
5000