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Garrison Co. produces three products X, Y, and Z - from a joint process. Each product may be sold at the split-off point or processed
Garrison Co. produces three products X, Y, and Z - from a joint process. Each product may be sold at the split-off point or processed further. Additional processing requires no special facilities, and production costs of further processing are entirely variable and traceable to the products involved. Last year all three products were processed beyond split-off. Joint production costs for the year were $120,000. Sales values and costs needed to evaluate Garrison's production policy follow. Units Sales Value at If Processed Further Product Produced Sales Value Additional Costs 6,000 Split off $ 40,000 15,000 $ 80,000 $ 1,200 XIN 3,000 40,000 3,000 1,500 1,000 16,000 30,000 The amount of joint costs allocated to product Y using the physical measure method is (calculate all ratios and percentages to 4 decimal places, for example 33.3333%, and round all dollar amounts to the nearest whole dollar): Multiple Choice $12,000. $32,000. $48,000. $36,000
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