Reference no: EM13149839
Phoenix Corporation has a joint process that produces three products: X, Y, and Z. Each product may be sold at split-off or processed further and then sold. Joint- processing costs for a year amount to $100,000. Other relevant data are as follows:
Separable
Processing
Sales Value Costs after Sales Value
Product at Split-off Split-off at Completion
X $128,000 $16,000 $160,000
Y 50,000 26,000 76,000
Z 25,600 20,000 40,000
Product Y _____.
A. should be processed further to increase profits by $26,000
B. Should be sold at split-off since processing further would only reduce profits by $26,000
C. should be processed further to increase profits by $76,000
D. can be processed further or sold at split-off; there is no difference in profit"
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