WP Corporation produces products X, Y, and Z from a single raw material input in...
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Accounting
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:
| Product X | Product Y | Product Z | ||||
| Units produced | 1,400 | 1,900 | 2,900 | |||
| Per unit sales value at split-off | $ | 12.00 | $ | 17.00 | $ | 14.00 |
| Added processing costs per unit | $ | 3.00 | $ | 5.00 | $ | 5.00 |
| Per unit sales value if processed further | $ | 18.00 | $ | 18.00 | $ | 23.00 |
The cost of the joint raw material input is $67,000. Which of the products should be processed beyond the split-off point?
| Product X | Product Y | Product Z | |
| A) | yes | yes | no |
| B) | yes | no | yes |
| C) | no | yes | no |
| D) | no | yes | yes |
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