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Question: A company has already incurred a $1,000 cost in partially producing its four products. Their selling prices when partially and fully processed follow with additional costs necessary to finish these partially processed units:

                                    Unfinished                      Finished                               Further
                               Product Selling Price            Selling Price                    Processing Costs

Alpha . . . . . . . . . . . . . $300                             $600                                 $150

Beta . . . . . . . . . . . . . . 450                               900                                   300

Gamma . . . . . . . . . . . 275                                  425                                   125

Delta . . . . . . . . . . . . . 150                                 210                                    75

Which product(s) should not be processed further,

(a) Alpha,

(b) Beta, 

(c) Gamma, or 

(d) Delta?

Accounting Basics, Accounting

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