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Allocating Joint Costs Using the Net Realizable Value Method A company manufactures three products, L-Ten, Triol,...

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Accounting

Allocating Joint Costs Using the Net Realizable Value Method Acompany manufactures three products, L-Ten, Triol, and Pioze, froma joint process. Each production run costs $12,600. None of theproducts can be sold at split-off, but must be processed further.Information on one batch of the three products is as follows:Product Gallons Further Processing Cost per Gallon Eventual MarketPrice per Gallon L-Ten 3,500 $0.60 $2.60 Triol 4,000 0.90 5.10Pioze 2,000 1.40 6.00 Required: 1. Allocate the joint cost toL-Ten, Triol, and Pioze using the net realizable value method.Round your allocation percentages to four decimal places and roundthe allocated costs to the nearest dollar. Joint Cost GradesAllocation L-Ten $ Triol Pioze Total $ 2. What if it cost $1.90 toprocess each gallon of Triol beyond the split-off point? How wouldthat affect the allocation of joint cost to the three products?Round your allocation percentages to four decimal places and roundthe allocated costs to the nearest dollar. Joint Cost GradesAllocation L-Ten $ Triol Pioze Total $

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