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Walman Corp. manufactures products X, Y, and Z from a joint production process. Joint costs are allocated to products based on relative sales values of
Walman Corp. 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: Units produced Allocated joint costs Sales value at split-off Additional costs for further processing Sales value if processed further X 26,000 $388,800 ? 74,000 549,000 Y 22,000 $208,800 290,000 66,000 446,000 Z 18,000 $180,000 250,000 46,000 408,000 Total 66,000 $ 777,600 1,080,000 186,000 1,403,000 Based solely on a relevant cost analysis, which of the three products should be processed by Walman beyond the split-off point? Only Y Only z Only Y and Z All three products: X,Y and Z
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