Assume that the flidgets are accounted for at the time of production. Allocate the joint costs using the net realizable value as a cost allocation base. Jibblejabble uses a production process that results in two joint products, widgets and pidgets, and one byproduct, flidgets. Jibblejabble begins with 2,000 pounds of input, processes it at a cost of

$20,000, which yields 1,000 pounds of A, 800 pounds of B, and 200 pounds of flidgets. A could be sold without further processing for $14 per pound, but instead it is further processed into widgets at a cost of $17,000. B could be sold without further processing for $10 per pound, but instead it is further processed into pidgets at a cost of $16,000. Widgets can be sold for $30 per pound, pidgets for $35 per pound, and flidgets for $8 per pound.