SAMCIS 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: IIT' Separable Further Processing Costs P60,000 50,000 90,000 Sales Price Sales Price After Product Unit Volume at Split-Off Further Processing P10 P25 3,000 4,000 8,000 Y 15 30 20 35 Assume that all processing costs are variable costs. Required: Which products should SAMCIS sell at split-off, and which products should be processed further?
SAMCIS 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: IIT' Separable Further Processing Costs P60,000 50,000 90,000 Sales Price Sales Price After Product Unit Volume at Split-Off Further Processing P10 P25 3,000 4,000 8,000 Y 15 30 20 35 Assume that all processing costs are variable costs. Required: Which products should SAMCIS sell at split-off, and which products should be processed further?
Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter5: Support Department And Joint Cost Allocation
Section: Chapter Questions
Problem 3CMA: Breegle Company produces three products (B-40, J-60, and H-102) from a single process. Breegle uses...
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Transcribed Image Text:SAMCIS 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:
IIT
Separable Further
Processing Costs
Sales Price
Sales Price After
Product
Unit Volume
at Split-Off
Further Processing
3,000
4,000
8,000
P10
15
P60,000
50,000
90,000
P25
Y
30
20
35
Assume that all processing costs are variable costs.
Required:/
Which products should SAMCIS sell at split-off, and which products should be processed further?
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