Refer to the facts in Exercise 11-42. After the publication of recent scientific test results, the government has banned the sale of product KC. IF KC is produced, it must be disposed of in an approved way that costs $114,000 for every 16,000 units produced.
In Exercise 11-42, The following questions relate to Kyle Company, which manufactures products KA, KB, and KC from a joint process. Joint product costs were $126,000. Additional information follows:
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Required :
a. Assuming that Kyle Company continues to use the physical units method of allocation, what joint costs will be allocated to KA and to KB, respectively?
b. Which, if either, product would you recommend Kyle Company sell atsplit-off?