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Question - All-A-Buzz makes three products from a joint production process using honey. All-A-Buzz makes three products from a joint production process using honey. Joint cost for the process in 2010 is $123,200.
Each container of honey butter, jam, and syrup, respectively, contains 16 ounces, 8 ounces, and 3 ounces of product.
a. Determine which products should be processed beyond the split-off point.
b. Assume honey syrup should be treated as a by-product. Allocate the joint cost based on units produced, weight, and sales value at split-off. Use the net realizable value method in accounting for the by-product.
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