Net Realizable Value Method to Solve for Unknowns: O'Connor Company manufactures leprechauns and shamrocks from a joint
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Net Realizable Value Method to Solve for Unknowns: O'Connor Company manufactures leprechauns and shamrocks from a joint process on a product called Green. For leprechauns, 4,000 units were produced having a sales value at the split-off point of $15,000. If leprechauns were processed further, the additional costs would be $3,000 and the sales value would be $20,000. For shamrocks, 2,000 units were produced having a sales value at split-off of $10,000. If shamrocks were processed further, the additional costs would be $1.000 and the sales value would be $12,000. Using the net realizable value method, the portion of the total joint product costs allocated to leprechauns was $9,000.
Required: Compute the total joint product costs.
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