Exam #4 (Chs 10.12) 150 pts. Due June 6 0 Help Save&Exit; Su TB MC Qu. 12-96 WP

Question

Exam #4 (Chs 10.12) 150 pts. Due June 6 0 Help Save&Exit; Su TB MC Qu. 12-96 WP Corporation produces products X, Y, and Z WP Corporation produces products X,Y, and Z from a singe row material input in a joint production process, Budgeted data for the next month is as follows points Product x Product Product Units produced 3, 900 S 19.00$ 21.00 24.00 S 3.00 $5.005.00 S 25.00 25.0030.00 2,900 024404 Per unit sales value at split-otf Added processing costs per unit Per unit sales value if processed further The cost of the joint raw material input is $87,000. Which of the procucts should be processed beyond the split-off point? A) n) C) D) yes yes yes yes yes Mutiple Choice Choice B

Explanation / Answer

The answer is Option B

We selected only X and Z because it is giving additional profit after processing. Product Y will be sold at split off.

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Product X Product Y Product Z Sale price after Splitoff $          25.00 $          25.00 $          30.00 Sale price at Splitoff $          19.00 $          21.00 $          24.00 Incremental Revenue per Unit $            6.00 $            4.00 $            6.00 Cost of Further Processing $            3.00 $            5.00 $            5.00 Proft(loss) from Further Processing $            3.00 $          (1.00) $            1.00

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