Information About Three Joint Products Follows The Cost of the Joint Process Is $140,000

Information about three joint products follows: $\begin{array}{lccc}&\underline{X}&\underline{Y} &\underline{Z}\\\text { Anticipated production } & 12,000 \mathrm{~kg} & 8,000 \mathrm{~kg} & 7,000 \mathrm{~kg} \\\text { Selling price/kg at split-off } & \$ 16 & \$ 26 & \$ 48\\\begin{array}{l}\text { Additional processing costs/ kg } \\\text { after split-off (all variable) }\end{array} &\$8&\$20&\$20\\\begin{array}{l}\text { Selling price/ kg after further } \\\text { processing }\end{array} & \$ 20 & \$ 40 & \$ 70 \\\end{array}$ The cost of the joint process is $140,000.Which of the joint products should be processed further?

A) X
B) Y
C) Z
D) both X and Y

Correct Answer:

Verified

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