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 at Split-Off Sales Price After Further Processing Product Unit Volume 3,000 4,000 8,000 Assume that all processing costs are variable costs. P10 P25 30 35 Y 15 20 Required: Which products should JENNY sell at split-ff, and which products should be processed further?
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 at Split-Off Sales Price After Further Processing Product Unit Volume 3,000 4,000 8,000 Assume that all processing costs are variable costs. P10 P25 30 35 Y 15 20 Required: Which products should JENNY sell at split-ff, and which products should be processed further?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Which products should Jenny sell at split-off, and which products be processed later?
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:
Separable Further
Processing Costs
P60,000
50,000
90,000
Sales Price
at Split-Off
Sales Price After
Further Processing
ILIT
Product
Unit Volume
3,000
4,000
8,000
Assume that all processing costs are variable costs.
P10
15
20
P25
30
35
Y
Required:
Which products should JENNY sell at split-off, and which products should be processed further?
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