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. Dresses Jackets Blouses Total Number of units produced 20,000 32,000 12,000 64,000 Joint cost allocated ? $276,000 $720,000 Sales values at split-off point ? $460,000 $160,000 $1,200,000 Additional costs of processing further $52,000 $40,000 $156,000 $248,000 Sales values after all processing $600,000 $536,000 $420,000 $1,556,000 a. What amount of joint cost should be allocated to dresses and blouses? ? Blouses Dresses 348,000 Allocated joint costs $ $ 96,000 b. What is the sales value at the split-off point for dresses? $ 580,000 C. Should any of the products be processed beyond the split-off point? Show computations. Dresses Jackets Blouses Net benefit (cost) of further processing X $ 0 x $ Process Further? dresses No jackets Yes blouses Yes d. If 24,000 jackets are processed further and sold the regular selling price, what is the gross profit on the sale? $ 0 X