Lowden Company produces products X, Y, and Z from a joint production process. Each product may be sold at the split-off point or processed further. Joint production costs of $132,000 per year are allocated to the products based on the relative number of units produced. Data for Lowden Company's operations for last year follow:
|
Product
|
Units Produced
|
Sales values at split-off
|
Sales values
|
Added costs*
|
|
X
|
3,000
|
$82,000
|
$110,000
|
$30,000
|
|
Y
|
6,000
|
$60,000
|
$112,000
|
$48,000
|
|
Z
|
2,000
|
$32,500
|
$50,000
|
$16,000
|
All variable and traceable to the products involved
Which products should be processed beyond the split-off point? Support your answer with computations.