Your Company produces products X, Y, and Z from a single raw material. Budgeted data for the next month is as follows: Y Units produced Per unit sales value at split-off Allocated costs at split off 2,500 3,000 4,000 $20.00 $23.00 $21.00 $4.00 $1.00 $6.00 $8.00 $8.00 $8.00 Added processing costs per unit Per unit sales value if processed further $30.00 $30.00 $30.00 The raw material relating to getting these units to split off is $150,000. Which of the products should be processed beyond the split-off point?
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.
![Your Company produces products X, Y, and Z from a single raw material. Budgeted data for the next month is as follows:
Y
Z
Units produced
Per unit sales value at split-off
Allocated costs at split off
Added processing costs per unit
Per unit sales value if processed
further
2,500 3,000 4,000
$20.00 $23.00 $21.00
$4.00 $1.00 $6.00
$8.00 $8.00 $8.00
$30.00 $30.00 $30.00
The raw material relating to getting these units to split off is $150,000. Which of the products should be processed beyond the split-off point?
O A.
Product
X Y
Z
no yes yes
OB.
Product
X Y X
yes no yes
OC.
Product
X
Y
yes yes
no
OD.
Product
X Y Z
no yes no
O E.
Product
X Y Z
no no no](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F97ba7db3-6783-4ef9-8048-8394988fb0f3%2Fe5776891-d815-40c7-a3ba-4eacc9c57077%2Fbf0nf5i_processed.png&w=3840&q=75)
![](/static/compass_v2/shared-icons/check-mark.png)
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 1 images
![Blurred answer](/static/compass_v2/solution-images/blurred-answer.jpg)
![FINANCIAL ACCOUNTING](https://compass-isbn-assets.s3.amazonaws.com/isbn_cover_images/9781259964947/9781259964947_smallCoverImage.jpg)
![Accounting](https://www.bartleby.com/isbn_cover_images/9781337272094/9781337272094_smallCoverImage.gif)
![Accounting Information Systems](https://www.bartleby.com/isbn_cover_images/9781337619202/9781337619202_smallCoverImage.gif)
![FINANCIAL ACCOUNTING](https://compass-isbn-assets.s3.amazonaws.com/isbn_cover_images/9781259964947/9781259964947_smallCoverImage.jpg)
![Accounting](https://www.bartleby.com/isbn_cover_images/9781337272094/9781337272094_smallCoverImage.gif)
![Accounting Information Systems](https://www.bartleby.com/isbn_cover_images/9781337619202/9781337619202_smallCoverImage.gif)
![Horngren's Cost Accounting: A Managerial Emphasis…](https://www.bartleby.com/isbn_cover_images/9780134475585/9780134475585_smallCoverImage.gif)
![Intermediate Accounting](https://www.bartleby.com/isbn_cover_images/9781259722660/9781259722660_smallCoverImage.gif)
![Financial and Managerial Accounting](https://www.bartleby.com/isbn_cover_images/9781259726705/9781259726705_smallCoverImage.gif)