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
20,000
16,000
12,000
48,000
Allocated joint costs
$ 277,200
$ 151,800
$ 125,400
$ 554,400
Sales value at split-off
?
230,000
190,000
840,000
Additional costs for further processing
56,000
48,000
34,000
138,000
Sales value if processed further
427,000
324,000
286,000
1,037,000
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
Answer & Explanation
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