Joint-Product Costs: Ending Inventories ‘The Darl Company operates a simple chemical process to reduce a single basic material into three separate items, here referred to as X, Y, and Z (all three end products being separated simultaneously at a single split-off point).

Y and Z are ready for sale immediately upon split-off without further processing or any other additional cost. Product X, however, is processed further before being sold.

The selling prices quoted below have not changed for three years, and no future changes are foreseen.

During 19_3, the selling prices of the items and the total number sold were as follows:

X—120 tons sold for $1,600 per ton Y—340 tons sold for $1,000 per ton Z—175 tons sold for $800 per ton There were no beginning inventories whatsoever of X, Y, or Z.

The total joint manufacturing costs for the year were $505,000. An additional $30,000 was spent in order to finish product X.

At the end of the year, the following inventories of completed units were on hand: X, 180 tons; Y, 60 tons; Z, 25 tons. There was no ending work in process.

Prepare a computation of the “cost” of inventories of X, Y, and Z for balance- sheet purposes as of December 31, 19_3. Include in your presentation a sum-?  lop1