sell at split off point or process further and joint cost allocation l
SELL AT SPLIT - OFF POINT OR PROCESS FURTHER & JOINT COST
Lauricella Inc. produces three products from a common set of inputs for $95,000. Other
sales and cost data follow:
Unit Sales Price
1. Which products should be sold at the split-off point?
2. Which products should be processed further?
3. What are Joint Costs?
4. For the purposes of making this decision, should joint costs be allocated? Why
or why not?
5. Are there any OTHER reasons why we might want to allocate these costs?
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