Manning Company uses a joint process to produce products W, X, Y, and Z.Each product may be sold at its split-off point or processed further.Additional processing costs of specific products are entirely variable.Joint processing costs for a single batch of joint products are $120,000.Other relevant data are as follows:
-Which products should Manning process further?
A) all
B) all except Z
C) X and Y
D) none

Question

Manning Company uses a joint process to produce products W, X, Y, and Z.Each product may be sold at its split-off point or processed further.Additional processing costs of specific products are entirely variable.Joint processing costs for a single batch of joint products are $120,000.Other relevant data are as follows:  
-Which products should Manning process further?
A) all 
B) all except Z 
C) X and Y 
D) none

Quizplus · Accepted Answer

Manning should process products X and Y further if the additional revenue from processing exceeds the additional costs.

Manning Company Uses a Joint Process to Produce Products W