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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

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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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
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
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