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Subject: Managerial Accounting Provide the following Requirement/s:...

Subject: Managerial Accounting

Provide the following Requirement/s: Show Complete Solution.

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EXERCISE 13-6 Sell or Process Further [LOG] Soles Company manufactures three products from a common input in a joint processing operation. Joint processing costs up to the split-off point total $100,000 per year, The company allocates these costs to thejoint products on the basis of their total sales value at the split-off point. These sales values are as follows: product X, $50,000; product Y, $90,000; and product Z. $60,000. Each product may be sold at the split-off point or processed further. Additional processing re- quires no special facilities. The additional processing costs and the sales value aficr Further processing for each product [on an annual basis} are shown below: X .......... 535.000 530.000 't" .......... $40,000 5150.000 2 .......... $12,000 $?5.000 Relevant Costs for Decision Making Required: Which product or products should be sold at the split-off point. and which product or products should be processed further? Show computations.

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