Estimated net realizable value method. Divco Inc. produces two joint products, cooking Total estimated het realizable oil and soap oil, from a single vegetable oil refining process. In July 2010, the joint costs of value at splitoff point, $30,000 this process were $28,800,000. Separable processing costs beyond the splitoff point were cooking oil, $36,000,000, and soap oil, $9,000,000. Cooking oil sells for $60 per drum. Soap oil sells for $30 per drum. Divco produced and sold 1,000,000 drums of cooking oil and 500,000 drums of soap oil. There are no beginning or ending inventories of cooking oil or soap oil.

REQUIRED 1s Allocate the $28,800,000 joint costs using the estimated NRV method.

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