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Benjamin Company produces products C, J, and R from a joint production process. Each product may be ...

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Benjamin Company produces products C, J, and R from a joint production process. Each product may be ...

Benjamin Company produces products C, J, and R from a joint production process. Each product may be sold at the split-off point or processed further. Joint production costs of $95,000 per year are allocated to the products based on the relative number of units produced. Data for Benjamin's operations for last year follow:

	Units Produced	Sales Values at Split-Off	Sales Values If Processed Further	Costs of Processing Further
Product C	6,000	$ 75,000	$ 100,000	$ 20,000
Product J	9,000	$ 70,000	$ 115,000	$ 36,000
Product R	4,000	$ 46,500	$ 55,000	$ 10,000

Required:
Which products should be processed beyond the split-off point?

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Introduction to Managerial Accounting: Brewer Edition: 9e

Edition: 9^th

Authors: Brewer, Garrison, Noreen

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