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WP Company Produces Products X,Y,and Z from a Single Raw

Question 15

Multiple Choice

WP Company produces products X,Y,and Z from a single raw material input in a joint production process.Budgeted data for the next month is as follows:
 Units Produced  Per Unit Sales Value at Split-Off  Added Processing Costs per Unit  Per Unit Sales Value if Processed Further XYZ1,5002,0003,000$19$21$24$7$7.50$7$29$29$30\begin{array}{l}\begin{array}{lll}\\\text { Units Produced } \\\text { Per Unit Sales Value at Split-Off } \\\text { Added Processing Costs per Unit } \\\text { Per Unit Sales Value if Processed Further }\\\end{array}\begin{array}{lll}\underline { X } & \underline { Y } & \underline { Z }\\1,500 & 2,000 & 3,000 \\\$ 19 & \$ 21 & \$ 24 \\\$ 7 & \$ 7.50 & \$ 7 \\\$ 29 & \$ 29 & \$ 30\end{array}\end{array}
The cost of the joint raw material input is $149,000.Which of the products should be processed beyond the split-off point? XYZ A)   Yes  Yes  No  B)   No  Yes  No  C)   Yes  No  Yes  D)   No  Yes  Yes \begin{array}{lccc}& \mathrm { X } & \mathrm { Y } & \mathrm { Z } \\\text { A) } & \text { Yes } & \text { Yes } & \text { No } \\\text { B) } & \text { No } & \text { Yes } & \text { No } \\\text { C) } & \text { Yes } & \text { No } & \text { Yes } \\\text { D) } & \text { No } & \text { Yes } & \text { Yes }\end{array}


A) Option A
B) Option B
C) Option C
D) Option D

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