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Company X uses a joint processing system for it's 2 products Y & Z. As a result of using the physical volume method of joint

Company X uses a joint processing system for it's 2 products Y & Z. As a result of using the physical volume method of joint cost allocation instead of the net realizable value method, they have overstated the unit cost for product Z and understated the unit cost for product Y. If Company X prepares separate financial statements for each of the 2 products, which of the following statements is true

COGS for product Z will be overstated
Gross Margin for product Z will be overstated
Net Income for product Y will be overstated
There will be no effect on the Income Statements for either Y or Z

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