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CoursHeroTranscribedText: Joint Product CostingMarket Value Method. Getty Company manufactures three productsA, B, and Cas a result of a joint process. During October, joint processing costs totaled $288,000. Details regarding each of the three products show: Product . A B C Units produced ....................... _.. ............................. _ 1.000 3,000 5,000 Units sold ..... ' ............................... 800 2,500 4,300 Further processing costs ........ $25,000 $60.000 $105,000 Sales price per unit ............. _. .................................. - $ 100 $ 30 $ 50 Required: . (1) Compute the Cost assigned to the ending inventory of each product and in total, using the market value method for joint product cost allocation. There were no units in n- ished goods on October 1. ' . . (2) Customers have been found 'who would bewilling to buy all of the output of each product at the split-Off point for the following prices: A, $60; B, $65; and C, $25. Show which of the products should be sold at. the split-off point. (3) Would your answer to requirement 2 change if Product B' 3 further processing cost of $60,000 included $18,000 of allocated xed costs? Why or why not? (4) Now suppose the $60, 000 cost of B' 3 further processing includes $18, 000 of allocated - xed costs, and the facilities that would be used to further process B have an alterna- tive use. If B is not processed further, the alternative use of these facilities will gener- ate revenues of $6,000 and variable costs of $1,000.. Should B be processed further? Scanned with CamScanner

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