The Prudential Company produces three products, E, S, and C, as the result of joint processing, which costs $150,000.

Required:
(1) Allocate the joint cost to the three products using the market value method.
(2) Suppose that product S could be sold at the split-off point for $5.50. Would that be a good idea? Show calculations.

Transcribed Image Text:

15,000 13,000 $30,000 $%24,000 $27,000 S 4.30 6.60 S6.00 30,000 Separable processing costs Unit sales price..