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From a particular joint process, Ovington Company produces three products-X, Y. and Z. Each product...

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Accounting

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From a particular joint process, Ovington Company produces three products-X, Y. and Z. Each product may be sold at the point of split off or processed further. Additional processing requires no special facilities, and production costs of further processing are entirely variable and traceable to the products involved. In 20-- these products were processed beyond split off. Joint production costs for the year were $60,000. Sales values and costs needed to evaluate Ovington's 20- production policy follow: Additional Costs and Sales Values if Processed Further Units Sales Values Sales Added Product Produced at Split Off Values Costs 6,000 $25,000 $40,000 $9,000 4,000 41,000 45,000 7,000 2,000 24,000 32,000 8,000 Joint costs are allocated to the products based on their sales value at split off. Determine which products the company should subject to additional processing in order to maximize profits. X Y 2

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