Your Company produces products X, Y, and Z from a single raw material. Budgeted data for the next month is as follows: Product 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 4,500 6,000 4,000 $25.00$26.00$28.00 $9.00$10.00$16.00 $8.00 $8.00 $8.00 $30.00$30.00$30.00 The raw material relating to getting these units to split off is $250,000. Which of the products should be processed beyond the split-off point? O A. Product Y no no no O B. Product Y yes yes Product no Oc. Y yes Product no yes OD. no yes no O E. Product Y yes yes no

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Your Company produces products X, Y, and Z from a single raw material. Budgeted data for the next month is as follows:
Product
X 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
4,500 6,000 4,000
$25.00$26.00$28.00
$9.00$10.00$16.00
$8.00 $8.00 $8.00
$30.00$30.00$30.00
The raw material relating to getting these units to split off is $250,000. Which of the products should be processed beyond the split-off point?
OA.
Product
Y
no
no
no
O B. Product
Y
yes
yes
Product
no
Oc.
Y
yes
Product
no
yes
OD.
Y
yes
Product
no
no
E.
yes yes
no
Transcribed Image Text:Your Company produces products X, Y, and Z from a single raw material. Budgeted data for the next month is as follows: Product X 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 4,500 6,000 4,000 $25.00$26.00$28.00 $9.00$10.00$16.00 $8.00 $8.00 $8.00 $30.00$30.00$30.00 The raw material relating to getting these units to split off is $250,000. Which of the products should be processed beyond the split-off point? OA. Product Y no no no O B. Product Y yes yes Product no Oc. Y yes Product no yes OD. Y yes Product no no E. yes yes no
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