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) Y and X.
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) Y and X. 
D) None.

Quizplus · Accepted Answer

SUPPORTING CALCULATIONS:
 
 11ea8a4c_48ad_d273_a0e6_814625f317e8_TB5550_00 *Difference between sales value at split off vs.sales value of final product

Manning Company Uses a Joint Process to Produce Products W