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WP Corporation produces products X, Y, and Z from a single raw material input in a joint production process. Budgeted data for the next
WP Corporation produces products X, Y, and Z from a single raw material input in a joint production process. Budgeted data for the next month is as follows: Units produced Per unit sales value at split-off Added processing costs per unit. Per unit sales value if processed further Product X 2,400 $ 21.00 $ 3.00 $ 25.00 Product Y 2,900 $ 24.00 $ 5.00 $ 25.00 Product 2 3,900 $ 24.00 $ 5.00 $ 30.00 The cost of the joint raw material input is $77,000. Which of the products should be processed beyond the split-off point? A) Product x yes yes c) no D) no Product Y yes no yes yes Product 2 no yes no yes
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