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6. TB MC Qu. 12-96 WP Corporation produces products X, Y, and Z ... WP Corporation produces products X, Y, and Z from a single

6. TB MC Qu. 12-96 WP Corporation produces products X, Y, and Z ...

WP Corporation produces products X, Y, and Z from a single raw material input in a joint production process. Budgeted data for the next month is as follows:

Product X Product Y Product Z
Units produced 1,500 2,000 3,000
Per unit sales value at split-off $ 13.00 $ 18.00 $ 15.00
Added processing costs per unit $ 4.00 $ 6.00 $ 6.00
Per unit sales value if processed further $ 19.00 $ 19.00 $ 24.00

The cost of the joint raw material input is $68,000. Which of the products should be processed beyond the split-off point?

Product X Product Y Product Z
A) yes yes no
B) yes no yes
C) no yes no
D) no yes yes

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