Processing beyond split-off and cost allocations All-A-Buzz makes three products from a joint production process using honey. Joint cost for the process for the year is $123,200.

		Per Unit	Incremental
	Units of	Selling Price	Processing	Final Sales
Product	Output	at Split-Off	Cost	Price
Honey butter	10,000	4.00	$3.00	$6.00
Honey jam	20,000	6.40	4.00	14.00
Honey syrup	1,000	3.00	0.40	3.60

Each container of honey butter, jam, and syrup, respectively, contains 16 ounces, 8 ounces, and 3 ounces of product.

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

	Process Further?
Honey butter	No
Honey jam	Yes
Honey syrup	Yes

b. Assume honey syrup should be treated as a by-product. Allocate the joint cost based on (1) units produced, (2) weight, and (3) sales value at split-off. Use the net realizable value approach, assuming by-product revenues reduce joint production costs.

(1) Joint costs allocated based on units produced

Honey butter	Answer
Honey jam	Answer
Total	Answer

(2) Joint costs allocated based on weigh

Honey butter	Answer
Honey jam	Answer
Total	Answer

(3) Joint costs allocated based on sales value at split-off Note: Round proportions to the nearest whole percentage and dollar amounts to the nearest whole dollar.

Honey butter	Answer
Honey jam	Answer
Total	Answer