Figure 6-10
Manning Company Uses a Joint Process to Produce

question 46

Multiple Choice

Figure 6-10
Manning Company uses a joint process to produce products W, X, Y, and Z. Each product may be sold at its split-off point or processed further. Additional processing costs of specific products are entirely variable. Joint processing costs for a single batch of joint products are £120,000. Other relevant data are as follows: $\begin{array}{crcr}& \text { Sales Value } & \text { Additional } & \text { Sales Value of } \\\text { Froduct } & \text { at Split-Off } & \text { Processing Costs } & \text { Final Product }\\\hline Y & £ 20,000 & £ 32,000 & £ 120,000 \\Z & 28,000 & 20,000 & 32,000 \\W & 40,000 & 60,000 & 80,000 \\X & 12,000 & 4,000 & 20,000 \\&£100,000&£116,000&£252,000\end{array}$
-Refer to Figure 6-10. Processing Y further will cause profits to

• A)increase by £120,000.
• B)increase by £52,000.
• C)increase by £68,000.
• D)decrease by £32,000.

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Definitions:

Oral Testimony

A form of evidence provided verbally by a witness, often under oath, in a legal proceeding.

Terrace Garden

A garden style or method where plants, flowers, or crops are grown in stepped, raised beds or terraces, often used in hilly or slope areas to manage space effectively.

Written Agreement

A formal, documented contract that outlines the terms and conditions agreed upon by the parties involved.

Enforceable

Refers to something, especially an agreement or contract, that is legally recognized and can be upheld in a court of law.