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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 Product Y Product Z $ $ $ 2,000 2,500 18.00 $ 23.00 1.00 $ 3.00 $ 24.00 $ 24.00 $ 3,500 $ 20.00 3.00 29.00 The cost of the joint raw material input is $73,000. Which of the products should be processed beyond the split-off point? A) Product X yes Product Y Product Z yes no B) yes no yes C) no yes no D) no yes yes Multiple Choice Choice A Choice B Choice C Choice D
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