Canning Company Uses a Joint Process to Produce Products W,X,Y,and

Multiple Choice

Canning Company uses a joint process to produce products W,X,Y,and Z.Each product may be sold at its split-off point or processed further.Additional processing costs of specific products are entirely variable.Joint processing costs for a single batch of joint products are $120,000.Other relevant data are as follows: $\begin{array}{lll}& \text { Sales Value } & \text { Additional } & \text { Sales Value of } \\\text { Product } & \text { at Split-Off } & \text { Processing Costs } & \text { Final Froduct }\\W&\$ 40,000 & \$ 60,000 & \$ 80,000 \\X&\$ 12,000 & \$ 4,000 & \$ 20,000 \\Y&\$ 20,000 & \$ 32,000 & \$ 120,000 \\Z&\$ 28,000 & \$ 20,000 & \$ 32,000 \\&\$ 100.000 & \$ 116000 & \$ 252,000\end{array}$ Which of the following actions should be taken by Canning?

A) Process W further.
B) Sell X now.
C) Process Y further.
D) Process Z further.