PZU S A uses a joint process to produce products YYYY1, ZZZZ1, AAAA2, and BBBB2 Each product may be sold at its split off point or processed further Joint processing costs for a single batch of joint products are $360,000 Other relevant data are as follows Product Sales Value At Split Off Additional Costs of Processing Sales Value of Final Product YYYY1 $50,000 $54,000 $100,000 ZZZZ1 64,000 48,000 92,000 AAAA2 56,000 51,000 94,000 BBBB2 44,000 42,000 70,000 Requirements Evaluate the profitability of processing Product YYYY1 further beyond the split off point Determine the net benefit of processing Product ZZZZ1 beyond the split off point Allocate joint costs using the constant gross margin percentage method Prepare a cost reconciliation report for PZU S A

Question: PZU S.A. uses a joint process to produce products YYYY1, ZZZZ1, AAAA2, and BBBB2. Each product may be sold at its split-off point or processed

PZU S.A. uses a joint process to produce products YYYY1, ZZZZ1, AAAA2, and BBBB2. Each product may be sold at its split-off point or processed further. Joint processing costs for a single batch of joint products are $360,000. Other relevant data are as follows:

Product	Sales Value At Split-Off	Additional Costs of Processing	Sales Value of Final Product
YYYY1	$50,000	$54,000	$100,000
ZZZZ1	64,000	48,000	92,000
AAAA2	56,000	51,000	94,000
BBBB2	44,000	42,000	70,000

Requirements:

Evaluate the profitability of processing Product YYYY1 further beyond the split-off point.
Determine the net benefit of processing Product ZZZZ1 beyond the split-off point.
Allocate joint costs using the constant gross margin percentage method.
Prepare a cost reconciliation report for PZU S.A.

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