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21. Marin Products produces three products DBB-1, DBB-2, and DBB-3 from a joint process. Each product may be sold at the split-off point or processed

21. Marin Products produces three products DBB-1, DBB-2, and DBB-3 from a joint process. Each product may be sold at the split-off point or processed further. Additional processing requires no special facilities, and production costs of further processing are entirely variable and traceable to the products involved. Key information about Marin's production, sales, and costs follows.

DBB-1 DBB-2 DBB-3 Total
Units Sold 18,000 29,000 39,000 86,000
Price (after addtl processing) $ 30 $ 15 $ 40
Separable Processing cost $ 469,000 $ 192,000 $ 279,000 $ 940,000
Units Produced 18,000 29,000 39,000 86,000
Total Joint Cost $ 5,300,000
Sales Price at Split-off $ 20 $ 30 $ 50

The amount of joint costs allocated to product DBB-2 using the net realizable value method is (calculate all ratios and percentages to 2 decimal places, for example 33.33%, and round all dollar amounts to the nearest whole dollar):

Multiple Choice

  • $4,256,430.

  • $5,600.

  • $807,720.

  • $1,109,290.

  • $235,850.

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