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point and after further processing, and Product X Y Z Number of Units Produced 4,700 9,400 3,760 Selling Price at Split-off $11.00 11.90 19.70 Selling Price after Processing $16.00 16.50 21.90 Additional Processing Costs $13,160 19,740 11,280

point and after further processing, and Product X Y Z Number of Units Produced 4,700 9,400 3,760 Selling Price at Split-off $11.00 11.90 19.70 Selling Price after Processing $16.00 16.50 21.90 Additional Processing Costs $13,160 19,740 11,280

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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A company manufactures three products using the same production process. The costs incurred up to the split-off point are $188,000. 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 X (a) Y Z Number of Units Produced 4,700 9,400 3,760 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 $13,160 19,740 11,280 Which product(s) should be processed further and which should be sold at the split-off point? should be sold at the split-of
Transcribed Image Text:A company manufactures three products using the same production process. The costs incurred up to the split-off point are $188,000. 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 X (a) Y Z Number of Units Produced 4,700 9,400 3,760 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 $13,160 19,740 11,280 Which product(s) should be processed further and which should be sold at the split-off point? should be sold at the split-of
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