Nationwide manufacturing company manufactures three

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Reference no: EM13601336

Nationwide Manufacturing Company manufactures three products from a common input in a joint processing system. Joint processing costs, up to the split-off point, total $180,000. The company allocates these costs to the joint products on the basis of their total sales value at the split-off point. These sales values are as follows: Product X, $125,000; Product Y, $175,000; Product Z, $120,000.

Each product may be sold at the split-off point or processed further. Additional processing requires no special equipment or facilities. The additional annual processing costs and sales value after further processing for each product are shown below:
Product Additional Process Costs Sales Value

X $ 45,000 $ 180,000
Y 60,000 225,000
Z 25,000 150,000

Which product or products should be sold at the split-off point, and which products should be processed further?

Reference no: EM13601336

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