JENNY Company produces three products (X, Y, and Z) in a joint process costing P100,000. The products can be sold as they leave the process, or they can be processed further and sold. The cost accountant has provided you with the following information: Separable Further Processing Costs P60,000 50,000 90,000 Sales Price at Split-Off Sales Price After Further Processing Product Unit Volume 3,000 4,000 8,000 Assume that all processing costs are variable costs. P10 P25 30 35 Y 15 20 Required: Which products should JENNY sell at split-ff, and which products should be processed further?

JENNY Company produces three products (X, Y, and Z) in a joint process costing P100,000. The products can be sold as they leave the process, or they can be processed further and sold. The cost accountant has provided you with the following information: Separable Further Processing Costs P60,000 50,000 90,000 Sales Price at Split-Off Sales Price After Further Processing Product Unit Volume 3,000 4,000 8,000 Assume that all processing costs are variable costs. P10 P25 30 35 Y 15 20 Required: Which products should JENNY sell at split-ff, and which products should be processed further?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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