Exercise 11-46 Physical Quantities Method; Sell or Process Further (LO 11-8, 9)

The following questions relate to Kyle Company, which manufactures products KA, KB, and KC from a joint process. Joint product costs were $188,000. Additional information follows:

					If Processed Further
Product	Units Produced	Sales Value at Split-Off			Sales Values			Additional Costs
KA	57,000	$	350,000		$	440,000		$	65,000
KB	71,000		320,000			380,000			53,000
KC	35,000		260,000			350,000			41,000

After the publication of recent scientific test results, the government has banned the sale of product KC. IF KC is produced, it must be disposed of in an approved way that costs $183,200 for every 35,000 units produced.

Required:

a. Assuming that Kyle Company continues to use the physical quantities method of allocation, what joint costs will be allocated to KA and to KB, respectively? (Do not round intermediate calculations.)

Product	Joint Costs
KA	$
KB	$

Please Show how you arrived at the answer. This is the second attempt at asking this question. First expert was wrong.

b. Which, if either, product would you recommend Kyle Company sell at split-off?

	KA
	KB
	*None of the above