Chan Minerals processes materials extracted from mines. The most common raw material that it processes results in three joint products: Sarco, Barco, and Larco. Each of these products can be sold as is, or it can be processed further and sold for a higher price. The company incurs joint costs of $180,000 to process one batch of the raw material that produces the three joint products. The following cost and sales information is available for one batch of each product.

Instructions
Determine whether each of the three joint products should be sold as is, or processedfurther.

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Allocated Sales Value of Processed Product 300,000 400,000 800,000 Sales Value at Cost to Proce sS Split-off Poi Joint Costs Sarco Barco Larco $200,000 300,000 400,000 $40,000 60,000 80,000 Further $120,000 89,000 250,000