Net realizable value and gross profit joint cost allocation Refer to the data in Exercise 18-1.

Exercise 18-1

Physical units and sales value joint cost allocation Featherweight Company makes sterile solutions for administering prescription drugs in hospitals. Most products are manufactured in joint production processes. One joint product group which yields three products with different glucose properties is the GL-1 product series. Below are cost and quantity data for a recent production run of the GL-1 product group. Total joint costs are $100,000.

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Sales Costs Net Realizable Output in Price Per after Product Units Unit Split-Off Value at Split-Off GL-1A 6,000 $10.00 $18,000 $ 6.00 GL-1B 13,000 16.00 52,000 10.00 GI-1C.. 1,000 32.00 10,000 14.00