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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
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 34,000 30,000 26,000 90,000 Allocated joint costs $ 560,000 $ 296,000 $ 264,000 $ 1,120,000 Sales value at split-off ? 370,000 330,000 1,400,000 Additional costs for further processing 98,000 90,000 62,000 250,000 Sales value if processed further 706,000 603,000 565,000 1,874,000 Based solely on a relevant cost analysis, which of the three products should be processed by Split beyond the split-off point
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