Split Corporation manufactures products X$,$ Y$,$ and Z from a joint production process. Joint costs are allocated to products based on relative sales values of the products at the split$-$off point. Additional information is as follows:

X Y Z Total

Units produced $17,00013,0009,00039,000$

Allocated joint costs $ $226,800$ $ $126,000$ $ $100,800$ $ $453,600$

Sales value at split$-$off $?200,000160,000720,000$

Additional costs for further processing $47,00039,00028,000114,000$

Sales value if processed further $364,000261,000223,000848,000$

Based solely on a relevant cost analysis, which of the three products should be processed by Split beyond the split$-$off point?

Multiple Choice

Only X

Only Y

Only Z

Only Y and Z

All three products: X$,$Y and Z

Prev