Product X and Y are made from a common input Joint processing costs up to the split off point total $46,400 a year The company allocates these costs to the joint products on the basis of their total sales values at the split off point Each product may be sold at the split off point or processed further Data concerning these products appear below Product X Product Y Total Allocated joint processing costs $ 18,200 $ 28,200 $ 46,400 Sales value at split off point $ 25,550 $ 37,300 $ 62,850 Costs of further processing $ 22,700 $ 17,000 $ 39,700 Sales value after further processing $ 47,600 $ 55,300 $ 102,900 Required What is financial advantage (disadvantage) of processing Product X beyond the split off point (Negative amount should be indicated by a minus sign ) What is financial advantage (disadvantage) of processing Product Y beyond the split off point (Negative amount should be indicated by a minus sign )

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Question: Product X and Y are made from a common input. Joint processing costs up to the split-off point total $46,400 a year. The company allocates

Product X and Y are made from a common input. Joint processing costs up to the split-off point total $46,400 a year. The company allocates these costs to the joint products on the basis of their total sales values at the split-off point. Each product may be sold at the split-off point or processed further. Data concerning these products appear below:

	Product X		Product Y		Total
Allocated joint processing costs	$	18,200	$	28,200	$	46,400
Sales value at split-off point	$	25,550	$	37,300	$	62,850
Costs of further processing	$	22,700	$	17,000	$	39,700
Sales value after further processing	$	47,600	$	55,300	$	102,900

Required:

What is financial advantage (disadvantage) of processing Product X beyond the split-off point? (Negative amount should be indicated by a minus sign.)

What is financial advantage (disadvantage) of processing Product Y beyond the split-off point? (Negative amount should be indicated by a minus sign.)

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