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ywiec S.A. uses a joint process to produce products Y, Z, AA, and BB. Each product may be sold at its split-off point or processed

Żywiec S.A. uses a joint process to produce products Y, Z, AA, and BB. Each product may be sold at its split-off point or processed further. Joint processing costs for a single batch of joint products are $100,000. Other relevant data are as follows:

ProductSales Value At Split-OffAdditional Costs of ProcessingSales Value of Final Product
Y$29,000$34,000$75,000
Z40,00026,00068,000
AA33,00028,00060,000
BB19,00021,00045,000

Requirements:

  1. Analyze the profitability of processing Product Y further beyond the split-off point.
  2. Determine the incremental profit from further processing Product Z.
  3. Allocate joint costs using the sales value at split-off method.
  4. Prepare a segment reporting statement for Żywiec S.A.

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