Split Company produces three products — X, Y, and Z — from a joint process. Each product may be sold at the split-off point or processed further. Additional processing requires no special facilities, and production costs of further processing are entirely variable and traceable to the products involved. Last year all three products were processed beyond split-off. Joint production costs for the year were $150,000. Sales values and costs needed to evaluate Split's production policy follow. Product Units Produced Sales Value at Split Off If Processed Further Sales Value Additional Costs x 10,000 $ 47,500 $ 117,500 $ 8,700 y 3,000 37,500 62,500 18,000 z 3,000 46,000 60,000 24,000 The amount of joint costs allocated to product Z using the sales value at split-off method is (calculate all ratios and percentages to 4 decimal places, for example 33.3333%, and round all dollar amounts to the nearest whole dollar):
Split Company produces three products — X, Y, and Z — from a joint process. Each product may be sold at the split-off point or processed further. Additional processing requires no special facilities, and production costs of further processing are entirely variable and traceable to the products involved. Last year all three products were processed beyond split-off. Joint production costs for the year were $150,000. Sales values and costs needed to evaluate Split's production policy follow. Product Units Produced Sales Value at Split Off If Processed Further Sales Value Additional Costs x 10,000 $ 47,500 $ 117,500 $ 8,700 y 3,000 37,500 62,500 18,000 z 3,000 46,000 60,000 24,000 The amount of joint costs allocated to product Z using the sales value at split-off method is (calculate all ratios and percentages to 4 decimal places, for example 33.3333%, and round all dollar amounts to the nearest whole dollar):
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Split Company produces three products — X, Y, and Z — from a joint process. Each product may be sold at the split-off point or processed further. Additional processing requires no special facilities, and production costs of further processing are entirely variable and traceable to the products involved. Last year all three products were processed beyond split-off. Joint production costs for the year were $150,000. Sales values and costs needed to evaluate Split's production policy follow.
| Product | Units Produced | Sales Value at Split Off | If Processed Further | |
|---|---|---|---|---|
| Sales Value | Additional Costs | |||
| x | 10,000 | $ 47,500 | $ 117,500 | $ 8,700 |
| y | 3,000 | 37,500 | 62,500 | 18,000 |
| z | 3,000 | 46,000 | 60,000 | 24,000 |
The amount of joint costs allocated to product Z using the sales value at split-off method is (calculate all ratios and percentages to 4 decimal places, for example 33.3333%, and round all dollar amounts to the nearest whole dollar):
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