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  3. split company produces three products x, y, and z

Split Company produces three products X, Y, and Z from a joint process....

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Accounting

Split Company produces three products X, Y, and Z from a joint process. Each product may be sold at the split-off point or processed further. Additional processing requires no special facilities, and production costs of further processing are entirely variable and traceable to the products involved. Last year all three products were processed beyond split-off. Joint production costs for the year were $144,000. Sales values and costs needed to evaluate Split's production policy follow.

Product Units Produced Sales Value at Split Off If Processed Further
Sales Value Additional Costs
x 34,000 $ 46,000 $ 110,000 $ 7,200
y 5,000 33,000 58,000 15,000
z 11,000 40,000 54,000 19,500

The amount of joint costs allocated to product Z using the physical measure method is (calculate all ratios and percentages to 4 decimal places, for example 33.3333%, and round all dollar amounts to the nearest whole dollar):

Multiple Choice

$31,680.

$10,400.

$14,400.

$46,080.

$97,920.

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