Required:

1. Define the following terms: joint production process; joint production costs; separable processing costs; and split-off point.

2. Which, if any, of products A, B, and C should be processed further and then sold? (Show calculations.)

3. Why do accountants allocate to individual products joint/common costs in a joint manufacturing process?

Profit from Processing Further: Deaton Corporation manufactures products A, B, and C from a joint process. Joint costs are allocated on the basis of relative sales value at the end of the joint process. Additional information for Deaton Corporation follows: Profit from Processing Further: Deaton Corporation manufactures products A, B, and C from a joint process. Joint costs are allocated on the basis of relative sales value at the end of the joint process. Additional information for Deaton Corporation follows