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Henry Corp. manufactures three products from a common input in a joint processing operation Joint...

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Accounting

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Henry Corp. manufactures three products from a common input in a joint processing operation Joint processing costs up to the split-off point total $75,000 per year. The company allocates these costs to the joint products on the basis of their total sales value at the split-off point Each product may be sold at the split-off point or processed further. The additional processing costs and sales value after further processing for each product (on an annual basis) are: Sales Further Sales Value Value at Processing After Further Split-off Costs Processing Product A $ 25,000 $4,000 $ 27,000 Product B $ 35,000 $3,500 $ 38,000 Product C $ 60,000 $8,000 $ 65,000 Required: Should each of the intermediate products be sold as is or processed further into an end product? Explain by showing the profit or loss resulting from further processing

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