Poblemlido manufactures a and b from a joint process cost , Ask an Expert

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Lido manufactures A and B from a joint process cost = $70,000. Five thousand pounds of A can be sold at split-off for $20 per pound or processed further at an additional cost of $10,000 and then sold for $23. Ten thousand pounds of B can be sold at split-off for $15 per pound or processed further at an additional cost of $23,000 and later sold for $17. Which products should be processed further or not and why? Give the dollar impact to income based on your recommendation.

Note: Please explain comprehensively and give step by step solution.

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M91165475

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