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) Spmal la Corporation has a joint process that produces three products: X, Y ay be sold at split-off or processed further and then sold. Joint-processing costs for a year and Z. Each product amount to $100,000. Other data follows: Sales Value at Split-Off Separable Processing Costs after Split-Off $16,000 26,000 20,000 Sales Value Product at Completion $128,000 $176,000 50,000 25,600 76,000 40,000 Processing Product X beyond the split-off point will cause profits to A) increase $32,000 C) increase $16,000 B) increase $192,000 D) increase $176,000
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Answer #1

Answer:-Processing Product X beyond the split-off point will cause profits to increase $32000 (ie:-Option A).

Explanation:- (Sales value at Completion -Sales value at spilt-off)-Separable processing costs after spilt-off

=($176000-$128000)-$16000

=$32000

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