Walman Corp. manufactures products X, Y, and Z from a joint production process. Joint costs are allocated to products based on relative sales value of the products at the split-off point. Additional information is as follows:

1. Product X's sales value at the split-off point is?

2. Based solely on a relevant cost analysis, which of the three products should be processed by Walman beyond the split-off point?

	X		Y			Z			Total
Units produced		14,000			10,000			6,000			30,000
Allocated joint costs	$	204,000		$	90,000		$	66,000		$	360,000
Sales value at split-off		?			150,000			110,000			600,000
Additional costs for further processing		38,000			30,000			22,000			90,000
Sales value if processed further		348,000			185,000			147,000			680,000

Answer rating: 100% (QA)

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