Extracted text: LO.3 (Sell or process further) In a joint process, Sylvia's Styles produces precut fabrics for three products: dresses, jackets, and blouses. Joint cost is allocated on the basis of rela- tive sales value at split-off. The company can choose to process each of the products fur- ther rather than sell the fabric at split-off. Information related to these products follows. Dresses Jackets Blouses Total Number of units produced 10,000 16,000 6,000 32,000 Joint cost allocated $174,000 $360,000 Sales values at split-off point $80,000 S600,000 Additional costs of processing further $26,000 $20,000 $78,000 $124,000 Sales values after all processing $300,000 $268,000 $210,000 $778,000 a. What amount of joint cost should be allocated to jackets and blouses? b. What are the sales values at the split-off point for dresses and jackets? c. Should any of the products be processed beyond the split-off point? Show computations. d. If 4,000 jackets are processed further and sold at the regular selling price, what is the gross profit on the sale? LO.3 & LO.4 (Joint cost allocation; by-products) Ring Corporation, which began operations in 2010, produces gasoline and a gasoline by-product. The following infor- mation is available pertaining to 2010 sales and production: Total production costs to split-off point $240,000 Gasoline sales 540,000 By-product sales 60,000 Gasoline inventory, 12/31/2010 30,000 Additional by-product costs: Marketing $20,000 Production 30,000 Ring Corp. accounts for the by-product at the time of production. Compute Ring's cost of sales for gasoline and for the by-product for the year.