WP Corporation 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: Product X Product Y Product Z Units produced 1,800 2,300 3,300 Per unit sales value at split-off $ 16.00 $19.00 $18.00 Added processing costs per unit $ 3.00 $5.00 $5.00 Per unit sales value if processed further $ 20.00 $ 20.00 $25.00 The cost of the joint raw material input is $71,000. Which of the products should be processed beyond the split-off point? Product X Product Y Product Z A) yes yes B) yes C) no D) no no yes yes no yes no yes

WP Corporation 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: Product X Product Y Product Z Units produced 1,800 2,300 3,300 Per unit sales value at split-off $ 16.00 $19.00 $18.00 Added processing costs per unit $ 3.00 $5.00 $5.00 Per unit sales value if processed further $ 20.00 $ 20.00 $25.00 The cost of the joint raw material input is $71,000. Which of the products should be processed beyond the split-off point? Product X Product Y Product Z A) yes yes B) yes C) no D) no no yes yes no yes no yes

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter4: Activity-based Costing

Section: Chapter Questions

Problem 9E: Nozama.com Inc. sells consumer electronics over the Internet. For the next period, the budgeted cost...

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Preparing a performance report Use the flexible budget prepared in P7-6 for the 31,000-unit level and the actual operating results listed below for the 31,000-unit level. Required: 1. Prepare a performance report. 2. List the major reasons why the actual operating income at 31,000 units differs from the master budget operating income at 30,000 units in Figure 7-12. 3. Given the level at which the company operated, how was its cost control? Item Direct materials: Direct labor: