Business, 27.07.2021 15:10 dmgcity

A company manufactures three products using the same production process. The costs incurred up to the split-off point are $200,000. These costs are allocated to the products on the basis of their sales value at the split-off point. The number of units produced, the selling prices per unit of the three products at the split-off point and after further processing, and the additional processing costs are as follow: Product Number of Units Produced Selling Price at Split-off Selling Price after Processing Additional Processing Costs
X 5,000 $10.00 $15.00 $14,000
Y 10,000 11.60 16.20 21,000
Z 4,000 19.40 21.60 12,000

Required:
Which product(s) should be processed further and which should be sold at the split off point?

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A company manufactures three products using the same production process. The costs incurred up to th...

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