A company manufactures three products, L-Ten, Triol, and Pioze, from a joint process.

Each production run costs $12,900. 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:

Required:
1. Allocate the joint cost to L-Ten, Triol, and Pioze using the net realizable value method. (Round the percentages to four significant digits. Round all cost allocations to the nearest dollar.)
2. What if it cost $2 to process each gallon of Triol beyond the split-off point? How would that affect the allocation of joint cost to the three products?LO1

Transcribed Image Text:

Product Gallons L-Ten 3,500 Triol 4,000 Pioze 2,500 Further Processing Cost per Gallon $0.50 1.00 1.50 Eventual Market Price per Gallon $2.00 5.00 6.00