19. Determine the profitability of each product after allocating joint costs. Kingline Company produces three products in a joint process costing $1,000,000. Product 1 sells for $0.35 per ounce after further processing, which costs $0.10 per ounce. Product 2 sells for $1 per ounce at splitoff. Product 3 sells for $0.65 per ounce after further processing, which costs $0.25 per ounce. This period, 25,000 pounds of Product 1, 50,000 pounds of Product 2, and 30,000 pounds of Product 3 resulted from the joint process (there are 16 ounces in a pound). The joint process also results in 3,800 gallons of a byproduct that sells for $8 per gallon.

Kingline uses the net realizable value of its products to allocate joint costs, and accounts for byproducts at the time of production.