Question
A manufacturing Company processes inputs into Product A, Product B, and Product C. During 2017, the joint costs of processing inputs were $420,000. There was
A manufacturing Company processes inputs into Product A, Product B, and Product C. During 2017, the joint costs of processing inputs were $420,000. There was no beginning or ending inventories for the 2017. Production and sales value information for the 2017 is as follows: Product Cases Sales Value at Split-off Point Separable Costs Selling Price A 100,000 $6 per case $3.00 per case $28 per case B 150,000 8 per case 5.00 per case 25 per case C 200,000 5 per case 2.50 per case 10 per case Required: Determine the amount allocated to each product if the estimated net realizable value method is used, and compute the cost per case for each product.
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