Question
Chambers Company produces two products from a joint process: X and Z. Joint processing costs for this production cycle are $8,000. Yards Sales price per
Chambers Company produces two products from a joint process: X and Z. Joint processing costs for this production cycle are $8,000.
| Yards | Sales price per yard at split-off | Disposal cost per yard at split-off | Further processing per yard | Final sale price per yard |
X | 1,500 | $6.00 | $3.50 | $1.00 | $ 7.50 |
Z | 2,200 | 9.00 | 5.00 | 3.00 | 11.25 |
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If X and Z are processed further, no disposal costs will be incurred or such costs will be borne by the buyer. Refer to Chambers Company. Which products would be processed further? A. only Product X B. only Product Z C. both Products X and Z D. neither Product X or Z
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