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Information About Three Joint Products Follows The Cost of the Joint Process Is $140,000

Question 106

Multiple Choice

Information about three joint products follows: XYZ Anticipated production 12,000lbs8,000lbs7,000lbs Selling price/lb. at split-off $16$26$48 Additional processing costs/lb.  after split-off (all variable)  $8$20$20 Selling price/lb. after further  processing $20$40$70\begin{array} { l c c c } & \underline { X } & \underline { Y } & \underline { Z } \\\text { Anticipated production } & 12,000 \mathrm { lbs } & 8,000 \mathrm { lbs } & 7,000 \mathrm { lbs } \\\text { Selling price/lb. at split-off } & \$ 16 & \$ 26 & \$ 48 \\\text { Additional processing costs/lb. } \\\text { after split-off (all variable) } & \$ 8 & \$ 20 & \$ 20 \\\text { Selling price/lb. after further }\\\text { processing } & \$ 20 & \$ 40 & \$ 70\end{array} The cost of the joint process is $140,000. Which of the joint products should be processed further?


A) X
B) Y
C) Z
D) both X and Y

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