Product Number of Units Produced Selling Price at Split-Off Selling Price After Processing Additional Processing Costs tables 4500 $11.00 $15.50 $11,000 benches 6000 $14.00 $16.20 $16,500 planters 1500 $18.50 $26.00 $8,000 Superior Company manufactures three...

Name: Product Number of Units Produced Selling Price at Split Off
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Accounting

Product Number of Units Produced Selling Price at Split-Off Selling Price After Processing Additional Processing Costs
tables 4500 $11.00 $15.50 $11,000
benches 6000 $14.00 $16.20 $16,500
planters 1500 $18.50 $26.00 $8,000
Superior Company manufactures three products using the sameproduction process: tables, benches, and planters. The costsincurred up to the split-off point are $250,000. These costs areallocated to the products on the basis of their sales value at thesplit-off point. The number of units produced, the selling pricesper units at each point in production, and the additionalprocessing costs are as follows:
1) Which information is not relevant to the decision on whetheror not to process the products further (1 pt)?
2) Prepare an incremental analysis (with labels!) of the threeproducts (6 pts).
3) Which products should be processed further and which shouldbe sold at the split-off point (2 pts)?
4) Would your decision in #3 be different if the company wasusing quantity of output to allocate joint costs? Explain (1pt).

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a The costs that are relevant in this decision are the incremental revenues and the incremental costs associated with processing the material past the splitoff point See Answer

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Product	Number of Units Produced	Selling Price at Split-Off	Selling Price After Processing	Additional Processing Costs
tables	4500	$11.00	$15.50	$11,000
benches	6000	$14.00	$16.20	$16,500
planters	1500	$18.50	$26.00	$8,000