Allocating Joint Costs Using the Net Realizable Value Method A company manufactures three products, L-Ten,...
60.1K
Verified Solution
Link Copied!
Question
Accounting
Allocating Joint Costs Using the Net Realizable Value Method A company manufactures three products, L-Ten, Triol, and Pioze, from a joint process. Each production run costs $12,000. None of the products can be sold at split-off, but must be processed further. Information on one batch of the three products is as follows: Eventual Market Further Processing Cost per Gallon Product Gallons Price per Gallon L-Ten 3,900 $0.40 $2.20 Triol 4,400 0.90 5.10 Pioze 2,200 1.60 6.90 Required: 1. Allocate the joint cost to L-Ten, Triol, and Pioze using the net realizable value method. Round your allocation percentages to four decimal places and round the allocated costs to the nearest dollar. Joint Cost Grades Allocation L-Ten Triol Pioze Total 2. What if it cost $1.90 to process each gallon of Triol beyond the split-off point? How would that affect the allocation of joint cost to the three products? Round your allocation percentages to four decimal places and round the allocated costs to the nearest dollar. Joint Cost Grades Allocation L-Ten $ Triol Pioze Total
Answer & Explanation
Solved by verified expert
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
