Two products, LB and NH, emerge from a joint process. Product LB has been allocated $14,300 of
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Two products, LB and NH, emerge from a joint process. Product LB has been allocated $14,300 of the total joint costs of $35,000. A total of 2,100 units of product LB are produced from the joint process. Product LB can be sold at the split-off point for $11 per unit, or it can be processed further for an additional total cost of $10,100 and then sold for $13 per unit. If product LB is processed further and sold, what would be the effect on the overall profit of the company compared with sale in its unprocessed form directly after the split-off point?
Related Book For
Fundamentals of Cost Accounting
ISBN: 978-0077398194
3rd Edition
Authors: William Lanen, Shannon Anderson, Michael Maher
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