A company manufactures three products using the same production process The costs incurred up to the split off point are $200,000 These costs are allocated to the products on the basis of their sales value at the split off point The number of units produced, the selling prices per unit of the three products at the split off point and after further processing, and the additional processing costs are as follows Product Number of Units Produced Selling Price at Split Off Selling Price after Processing Additional Processing Costs D 4,000 $10 00 $15 00 $14,000 E 6,000 11 60 16 20 20,000 F 2,000 19 40 22 60 9,000 Which information is relevant to the decision on whether or not to process the products further Explain why this information is relevant Would your decision be different if the company was using the quantity of output to allocate joint costs Explain

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Question: A company manufactures three products using the same production process. The costs incurred up to the split-off point are $200,000. These costs are allocated to

A company manufactures three products using the same production process. The costs incurred up to the split-off point are $200,000. These costs are allocated to the products on the basis of their sales value at the split-off point. The number of units produced, the selling prices per unit of the three products at the split-off point and after further processing, and the additional processing costs are as follows.

Product	Number of Units Produced		Selling Price at Split-Off		Selling Price after Processing		Additional Processing Costs
D		4,000		$10.00		$15.00		$14,000
E		6,000		11.60		16.20		20,000
F		2,000		19.40		22.60		9,000

Which information is relevant to the decision on whether or not to process the products further? Explain why this information is relevant.

Would your decision be different if the company was using the quantity of output to allocate joint costs? Explain.

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