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Question - S Company produces 3 joint products XYZ from one input. The products can be sold at the split-off point or processed further. The joint production cost for the month, allocated among the products based on the relative physical volume of output are as follows:
Materials 150,000
Labor 30,000
Factory overhead 20,000
Total joint cost 200,000
Additional information about the three products are given in the following:
Products
Production in units
Unit Sales Price
At split off
If processed further
Additional Processing Cost
X
5,000
80
100
15
Y
3,000
45
60
20
Z
2,000
75
10
Required - How much is the total gross profit if the company took the most profitable action with respect to the three products?
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