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Bobcat Company produces three products (X, Y, and Z) in a joint process costing $100,000. The products can be sold as they leave the process,
Bobcat Company produces three products (X, Y, and Z) in a joint process costing $100,000. The products can be sold as they leave the process, or they can be processed further and sold. The cost accountant has provided you with the following information:
Product Unit Volume Sale Price at Split-off Separable Further Processing Costs Sales Price After Further Processing
X 3,000 $10 $60,000 $25
Y 4,000 $15 $50,000 $30
Z 8,000 $20 $90,000 $35
Which products should Bobcat Company sell at split-off, and which products should be processed further?
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