Chapter 11 Joint Products and By-Products 385 From a particular joint process, Watkins Company produces three products, X, Y, and Z. Each product may be sold at split-off or processed further. Additional processing requires no special facilities; and production costs of further processing are entirely variable and traceable to the products involved. In 2016, all three products were processed beyond split-off. Joint production costs for the year was P60,000. Sales value and costs for 2012 are as follows: Units produced Sales values at split-off If processed further Final sales value Separable costs a b. P 5.00 P 12.00 X $6,000 P25,000 CP 4.00. d. p. 9.00 42,000 9,000 Y 4,000 P41,000 45,000 7,000 Z 2,000 P24,000 Joint costs are allocated to the products in proportion to the relative physical volume of output. 7. The relevant unit cost for a decision to sell Product Z or process further is 20 32,000 8.000 M CALAM 8. See item 7. To maximize operating income, Watkins should subject the following products to additional processing a X only b. X, Y, and Z C Y and Z only d. Z only
Chapter 11 Joint Products and By-Products 385 From a particular joint process, Watkins Company produces three products, X, Y, and Z. Each product may be sold at split-off or processed further. Additional processing requires no special facilities; and production costs of further processing are entirely variable and traceable to the products involved. In 2016, all three products were processed beyond split-off. Joint production costs for the year was P60,000. Sales value and costs for 2012 are as follows: Units produced Sales values at split-off If processed further Final sales value Separable costs a b. P 5.00 P 12.00 X $6,000 P25,000 CP 4.00. d. p. 9.00 42,000 9,000 Y 4,000 P41,000 45,000 7,000 Z 2,000 P24,000 Joint costs are allocated to the products in proportion to the relative physical volume of output. 7. The relevant unit cost for a decision to sell Product Z or process further is 20 32,000 8.000 M CALAM 8. See item 7. To maximize operating income, Watkins should subject the following products to additional processing a X only b. X, Y, and Z C Y and Z only d. Z only
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Pls answer ASAP I really need help
Transcribed Image Text:Chapter 11 Joint Products and By-Products
385
From a particular joint process, Watkins Company produces three products, X, Y, and
Z. Each product may be sold at split-off or processed further. Additional processing
requires no special facilities, and production costs of further processing are entirely
variable and traceable to the products involved. In 2016, all three products were
processed beyond split-off. Joint production costs for the year was P60,000. Sales
value and costs for 2012 are as follows:
Units produced
Sales values at split-off
If processed further
Final sales value
P 5.00
P 12.00
C. P 4.00
d. P 9.00
O
b.
X
$6,000
P25,000
42,000
9,000
a
Y
4,000
P41,000
45,000
7,000
Separable costs
Joint costs are allocated to the products in proportion to the relative physical volume
of output.
7. The relevant unit cost for a decision to sell Product Z or process further is
Z
2,000
P24,000
32,000
8.000
See item 7. To maximize operating income, Watkins should subject the following
products to additional processing
ALAM.
X only
b.
X, Y, and Z
C. Y and Z only
d. Z only
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 3 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education