JENNY Company produces three products (X, Y, and Z) in a joint process costing P100,000. The products can be sold as they leave the process, or they can be processed further and sold. The cost accountant has provided you with the following information: Separable Further Processing Costs P60,000 50,000 90,000 Sales Price After Further Processing P25 30 Sales Price Product Unit Volume at Split.Off 3,000 4,000 8,000 P10 15 20 Y 35 Assume that all processing costs are variable costs. Required: Which products should JENNY sell at split-off, and which products should be processed further?

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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JENNY Company produces three products (X, Y, and Z) in a joint process costing P100,000.
The products can be sold as they leave the process, or they can be processed further and sold.
The cost accountant has provided you with the following information:
Sales Price
at Split-Off
P10
15
20
Separable Further
Processing Costs
P60,000
50,000
90,000
Sales Price After
Product
Unit Volume
Further Processing
3,000
4,000
8,000
Assume that all processing costs are variable costs.
P25
30
35
Y
Required:
Which products should JENNY sell at split-off, and which products should be processed further?
Transcribed Image Text:JENNY Company produces three products (X, Y, and Z) in a joint process costing P100,000. The products can be sold as they leave the process, or they can be processed further and sold. The cost accountant has provided you with the following information: Sales Price at Split-Off P10 15 20 Separable Further Processing Costs P60,000 50,000 90,000 Sales Price After Product Unit Volume Further Processing 3,000 4,000 8,000 Assume that all processing costs are variable costs. P25 30 35 Y Required: Which products should JENNY sell at split-off, and which products should be processed further?
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