Question
2 Portofino Corporation produces three products in a joint process: Product A, Product B and Product C. The total joint manufacturing costs were 100,000$. Information
2 Portofino Corporation produces three products in a joint process: Product A, Product B and Product C. The total joint manufacturing costs were 100,000$. Information regarding the products appears below:
|
| Product A | Product B | Product C |
| Units Produced | 20,000 | 25,000 | 10,000 |
| Sales Value at Split-off | $150,000 | $50,000 | $20,000 |
| Additional costs if Processed further | $10,000 | $30,000 | $5,000 |
| Sales Value if Processed Further | $170,000 | $90,000 | $28,000 |
Required:
(a) Allocate the joint costs using the relative sales value at split-off method.
(b) Allocate the joint costs using the NRV method.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started
The Social Audit Consumer Handbook A Guide To The Social Responsibilities Of Business To The Consumer
Authors: Charles Medawar
1978th Edition
0333216660, 978-0333216668
