with solutions and explaination

From a particular joint process, Watkins Company produces three products, X, Y, and Z. Each product may be sold at split-off or processed further. Additional processing requires no special facilities, and production costs of further processing arc entircly variable and traceable to the products involved in 2008, all three products were processed beyond split-off Joint production costs for the year was P60,000. Sales value and costs for 2012 are as follows: X Y Z Units produced 6.000 4.000 2,000 Sales values at split-off P25,000 P41,000 P24,000 If processed further Final sales value 42,000 45,000 32,000 Separable costs 9,000 7,000 8.000 Joint costs are allocated to the products in proportion to the relative physical volume of output 7. The relevant unit cost for a decision to sell Product Z or process further is a. P 5.00 b. P 12.00 P 4.00 P 9.00 8. See item 7. To maximize operating income, Watkins should subject the following products to additional processing: a. X only b. X, Y, and Z Y and Z only d. Z only c. d o. Michelle Company produces joint Products A and B from a process that also yields a by-product Y The by-product require additional processing before it can be sold. The cost assigned to the by-product is its market value minus additional costs incurred after split-off. Information concerning a batch produced in January, 2012 at a joint cost of P40,000 is as follows: UNITS MARKET COSTS AFTER PRODUCT PRODUCED VALUE SPLIT-OFF 800 P 44,000 P 4,500 B 700 32,000 3,500 500 4,000 1.000 9. How much of the joint cost should be allocated to the joint products? P 35,000 b. P 36,000 P 37.000 d P 39,000 a