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A company manufactures three products, L-Ten, Triol, and Pioze, from a joint process. Each production run costs $12,400. None of the products can be sold
A company manufactures three products, L-Ten, Triol, and Pioze, from a joint process. Each production run costs $12,400. None of the products can be sold at split-off, but must be processed further. Information on one batch of the three products is as follows: Further Processing Cost per Gallon Eventual Market Price per Gallon Product Gallons L-Ten 3,800 $0.70 $2.90 Triol 4,300 1.00 5.10 Pioze 2,500 1.40 6.40 1. Allocate the joint cost to L-Ten, Triol, and Pioze using the net realizable value method. Round your allocation percentages to four decimal places and round the allocated costs to the nearest dollar. Joint Cost Grades Allocation L-Ten Triol Pioze Total 2. What if it cost $2.00 to process each gallon of Triol beyond the split-off point? How would that affect the allocation of joint cost to the three ) products? Round your allocation percentages to four decimal places and round the allocated costs to the nearest dollar. Joint Cost Grades Allocation L-Ten Triol Pioze Total
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