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Canning Company uses a joint process to produce products W, X, Y, and Z. Each product may be sold at its split-off point or processed
- Canning Company uses a joint process to produce products W, X, Y, and Z. Each product may be sold at its split-off point or processed further. Additional processing costs of specific products are entirely variable. Joint processing costs for a single batch of joint products are $120,000. Other relevant data are as follows:
Sales Value Additional Sales Value of Product at Split-Off Processing Costs Final Product W $ 40,000 $ 60,000 $ 80,000 X $ 12,000 $ 4,000 $ 20,000 Y $ 20,000 $ 32,000 $120,000 Z $ 28,000 $ 20,000 $ 32,000 $100,000 $116,000 $252,000 a.Process W further.
b.Process Y further.
c.Sell X now.
d.Process Z further.
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