A company manufactures three products using the same production process. The costs incurred up to the split-off point are $160,000. These costs are allocated to the products on the basis of their sales value at the split-off point. The number of units produced, the selling prices per unit of the three products at the split-off point and after further processing, and the additional processing costs are as follow: Product Number of Units Produced Selling Price at Split-off Selling Price after Processing Additional Processing Costs X 4,000 $10.00 $15.00 $11,200 Y 8,000 11.60 16.20 16,800 Z 3,200 19.40 21.60 9,600 (a) Which product(s) should be processed further and which should be sold at the split-off point? select a product should be processed further but select a product should be sold at the splitoff point.

A company manufactures three products using the same production process. The costs incurred up to the split-off point are $160,000. These costs are allocated to the products on the basis of their sales value at the split-off point. The number of units produced the selling prices per unit of the three products at the split-off point and after further processing and the additional processing costs are as follow: Product Number of Units Produced 4,000 Selling Price at Split-off $10.00 Selling Price after Processing $15.00 Additional Processing Costs $11.200 x Y 8.000 11.60 16.20 16,800 Z 3.200 19.40 21.60 9,600 (a) Which product(s) should be processed further and which should be sold at the split-off point? should be processed further but should be sold at the split-off point. Save for Later Attempts: 0 of 1 used Submit