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Split Corporation manufactures products X, Y, and Z from a joint production process. Joint costs...

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Accounting

Split Corporation manufactures products X, Y, and Z from a joint production process. Joint costs are allocated to products based on relative sales values of the products at the split-off point. Additional information is as follows:
X Y Z Total
Units produced 30,00026,00022,00078,000
Allocated joint costs $ 471,200 $ 250,800 $ 220,400 $ 942,400
Sales value at split-off ?question mark 330,000290,0001,240,000
Additional costs for further processing 86,00078,00054,000218,000
Sales value if processed further 624,000521,000483,0001,628,000
Based solely on a relevant cost analysis, which of the three products should be processed by Split beyond the split-off point?
Multiple Choice
Only X
Only Y
Only Z
Only Y and Z
All three products: X,Y and Z

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