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Figure 6-11
Information About Three Joint Products Follows The Cost of the Joint Process Is £140,000

Question 18

Multiple Choice

Figure 6-11
Information about three joint products follows: XYZ Anticipated production 12,000kgs.8,000kgs.7,000kgs. Selling price /kg. at split-off £16£26£48 Additional processing costs /kg. after split-off (all variable)  £8£20£20 Selling price /kg. after further  processing £20£40£70\begin{array}{lccc}&\text {X}&\text {Y}&\text {Z}\\\text { Anticipated production } & 12,000 \mathrm{kgs} . & 8,000 \mathrm{kgs} . & 7,000 \mathrm{kgs} . \\\text { Selling price } / \mathrm{kg} . \text { at split-off }& £ 16 & £ 26 & £ 48 \\\text { Additional processing costs } / \mathrm{kg} .\\\text { after split-off (all variable) } & £ 8 & £ 20 & £ 20\\\text { Selling price } / \mathrm{kg} . \text { after further } \\\text { processing }&£20&£40&£70 \\\end{array}
The cost of the joint process is £140,000.
-Refer to Figure 6-11. If the firm is currently processing all three products beyond split-off, the firm's income would be


A) £736,000.
B) £654,000.
C) £596,000.
D) £514,000.

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