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A company manufactures three products using the same production process. The costs incurred up to the split-off point are $204,000. These costs are allocated
A company manufactures three products using the same production process. The costs incurred up to the split-off point are $204,000. These costs are allocated to the products on the basis of their sales value at the split-off point. The number of units produced, the selling prices per unit of the three products at the split-off point and after further processing, and the additional processing costs are as follow: Product Number of Units Produced Selling Price at Split-off Selling Price after Processing Additional Processing Costs X 5,100 $9.00 $14.00 $14,280 Y 10,200 11.30 15.90 21.420 Z 4,080 19.10 21.30 12,240 (a) Which product(s) should be processed further and which should be sold at the split-off point? should be processed further but should be sold at the split-off point. eTextbook and Media Save for Later Attempts: 0 of 1 used Submit Answer
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