WP Corporation produces products X, Y, and Z from a single raw material input in a joint production process. Budgeted data for the next month is as follows: Product X Product Y Product Z Units produced 1,800 2,300 3,300 Per unit sales value at split-off $ 16.00 $19.00 $18.00 Added processing costs per unit $ 3.00 $5.00 $5.00 Per unit sales value if processed further $ 20.00 $ 20.00 $25.00 The cost of the joint raw material input is $71,000. Which of the products should be processed beyond the split-off point? Product X Product Y Product Z A) yes yes B) yes C) no D) no no yes yes no yes no yes

WP Corporation produces products X, Y, and Z from a single raw material input in a joint production process. Budgeted data for the next month is as follows: Product X Product Y Product Z Units produced 1,800 2,300 3,300 Per unit sales value at split-off $ 16.00 $19.00 $18.00 Added processing costs per unit $ 3.00 $5.00 $5.00 Per unit sales value if processed further $ 20.00 $ 20.00 $25.00 The cost of the joint raw material input is $71,000. Which of the products should be processed beyond the split-off point? Product X Product Y Product Z A) yes yes B) yes C) no D) no no yes yes no yes no yes

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter13: Lean Manufacturing And Activity Analysis

Section: Chapter Questions

Problem 3BE

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Concept explainers

Master Budget

A master budget can be defined as an estimation of the revenue earned or expenses incurred over a specified period of time in the future and it is generally prepared on a periodic basis which can be either monthly, quarterly, half-yearly, or annually. It helps a business, an organization, or even an individual to manage the money effectively. A budget also helps in monitoring the performance of the people in the organization and helps in better decision-making.

Sales Budget and Selling

A budget is a financial plan designed by an undertaking for a definite period in future which acts as a major contributor towards enhancing the financial success of the business undertaking. The budget generally takes into account both current and future income and expenses.

Question

WP Corporation produces products X, Y, and Z from a single raw material input in a joint production process. Budgeted data for the next month is as follows:
Product X Product Y Product Z
1,800 2,300
3,300
$16.00
$19.00
$18.00
Added processing costs per unit
$ 3.00
$5.00 $5.00
Per unit sales value if processed further $ 20.00 $ 20.00 $25.00
The cost of the joint raw material input is $71,000. Which of the products should be processed beyond the split-off point?
Product XProduct Y Product Z
A) yes
yes
Units produced
Per unit sales value at split-off
B) yes
C) no
D) no
no
yes
yes
no
yes
no
yes

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