Question: 23. (Processing beyond split-off and cost allocations) Planetary Products has a joint process that makes three products. Joint cost for the process is $30,000. Sun,

23. (Processing beyond split-off and cost allocations) Planetary Products has a joint process that makes three products. Joint cost for the process is $30,000.

Product Units of Output Per Unit Selling Price Incremental Final Processing Sales

Sun, Moon, and Mars weigh 10 pounds, 6 pounds, and 2 pounds, respectively.

a. Determine which products should be processed beyond the split-off point.

b. Determine whether Mars should be treated as a by-product. Allocate the joint processing cost based on units produced, weight, and approximated net realizable value at split-off. Use the net realizable value method in accounting for any by-products.

Product Units of Output Per Unit Selling Price Incremental Final Processing Sales at Split-Off Costs Price Sun 5,000 $2.00 $1.50 $3.00 Moon 10,000 1.00 2.00 6.00 Mars 250 1.50 0.20 1.80

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