1.Life Company manufactures products X and Y from a joint process that also yields a by-product Z. Revenue from sales of Z is treated as a reduction of joint costs. Additional information is as follows:

XYZTotal

Units produced20,00020,00010,00050,000

Joint costs???262,000

SV at MUSHROOMS 300,000P 150,000P 10,000P 460,000

Joint costs were allocated using the SV at SOP method. The joint costs allocated to product X were ____

2.From a particular joint process, TWO KNIVES COMPANY produces products X, Y and Z. Each product may be sold at split-off or processed further. Additional processing requires no special facilities, and production costs of further processing are entirely variable and traceable to the products involved. In 2016, all three products were processed beyond split-off. Joint production costs for the year were P 60,000. Sales value and costs for 2016 are as follows:

XYZ

Units produced6,0004,0002,000

Sales value at SOPP 25,000P 41,000P 24,000

If processed further

Final sales value42,00045,00032,000

Separable costs9,0007,0008,000

Joint costs are allocated to the products in proportion to the relative physical volume of output.

The relevant unit costs for a decision to sell product Z or process further is ________.

To maximize operating income, the company would be subjected to the following additional processing:

a. X onlyc. Y and Z only

b. X, Y, Zd. Z only