WP Company Produces Products X,Y,and Z from a Single Raw

question 15

Multiple Choice

WP Company produces products X,Y,and Z from a single raw material input in a joint production process.Budgeted data for the next month is as follows:
$\begin{array}{l}\begin{array}{lll}\\\text { Units Produced } \\\text { Per Unit Sales Value at Split-Off } \\\text { Added Processing Costs per Unit } \\\text { Per Unit Sales Value if Processed Further }\\\end{array}\begin{array}{lll}\underline { X } & \underline { Y } & \underline { Z }\\1,500 & 2,000 & 3,000 \\\$ 19 & \$ 21 & \$ 24 \\\$ 7 & \$ 7.50 & \$ 7 \\\$ 29 & \$ 29 & \$ 30\end{array}\end{array}$
The cost of the joint raw material input is $149,000.Which of the products should be processed beyond the split-off point? $\begin{array}{lccc}& \mathrm { X } & \mathrm { Y } & \mathrm { Z } \\\text { A) } & \text { Yes } & \text { Yes } & \text { No } \\\text { B) } & \text { No } & \text { Yes } & \text { No } \\\text { C) } & \text { Yes } & \text { No } & \text { Yes } \\\text { D) } & \text { No } & \text { Yes } & \text { Yes }\end{array}$

• A) Option A
• B) Option B
• C) Option C
• D) Option D

Distinguish between the economic performance approach and the commercial and tax law approach to financial reporting.

Recognize the significance of global convergence towards a single set of accounting standards.

Calculate plantwide overhead rates.

Identify situations suitable for plantwide overhead rates versus departmental overhead rates or activity-based costing.

---

Definitions:

3M Company

An American multinational conglomerate known for its range of products including adhesives, abrasives, and laminates.

Low-Waste Approach

A strategy or lifestyle choice focusing on reducing the amount of waste generated by adopting practices like reusing, recycling, and choosing products that are made to last.

Built-In Obsolescence

is a design policy for products that ensures they become outdated or non-functional after a certain period, encouraging consumers to purchase new items.

Low-Waste Society

A society that emphasizes reducing the amount of waste generated through practices like reuse, recycling, and responsible consumption.