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Question $3$

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Joint cost allocation; sell or process further

In a joint process, Wear Art produces precut fabrics for three products: dresses, jackets, and blouses.

Joint cost is allocated on the basis of relative sales value at split$-$off. The company can choose to process each of the products further rather than sell the fabric at split$-$off. Information related to these products follows.

$\backslash$table$[[,$Dresses,Jackets,Blouses,Total$],[$Number of units pr$,20,000,32,000,12,000,64,000],[$Joint cost allocated,?,$$276,000,?,$$$720,000$