From a particular joint process, Vangie Company produces three products, X, Y, and Z. Each product may be sold at the time point of split-off or processed further.Additional processing requires no special facilities, and production costs of further processing are entirely variable and traceable to the product involved.In 2003, all three products were processed beyond split-off.Joint production costs for the year were P60,000.Sales values and costs needed to evaluate Vangie 2003 production policy follow:

Additional Costs and Sales Value if process Further

Product

Units

Produced

Sales Value at Split-off

Sales Value

Added costs

X

6,000

P 25,000

P 12,000

P 9,000

Y

4,000

41,000

45,000

7,000

Z

2,000

24,000

32,000

8,000

Joint costs are allocated to the products in proportion to the relative physical volume of output.For units of Z, the unit production cost most relevant to a sell-or-process-further decision.