A company manufactures three products using the same production process. The costs incurred up to the split-off point ar

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A Company Manufactures Three Products Using The Same Production Process The Costs Incurred Up To The Split Off Point Ar 1 (50.19 KiB) Viewed 47 times

A company manufactures three products using the same production process. The costs incurred up to the split-off point are $168,000. 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 (a) X Y Z Number of Units Produced 4,200 8,400 3,360 Selling Price at Split-off $11.00 11.90 19.70 Selling Price after Processing $16.00 16.50 21.90 should be processed further but Additional Processing Costs $11,760 17,640 10,080 Which product(s) should be processed further and which should be sold at the split-off point? should be sold at the split-off point.