Allocating Joint Costs Using the Net Realizable Value Method A company manufactures three products, L-Ten, Triol,...
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Allocating Joint Costs Using the Net Realizable Value Method A company manufactures three products, L-Ten, Triol, and Pioze, from a joint process. Each production run costs $12,600. 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 Eventual Market Product Gallons Cost per Gallon Price per Gallon L-Ten 3,400 $0.50 $2.10 Triol 3,900 1.10. 2,2001 1.40 4.80 6.60 Pioze Required: 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. Grades L-Ten Triol Pioze Joint Cost Allocation Total 2. What if it cost $2.10 to process each gallon of Trial beyond the split-off point? How would that affect the allocation of joint cost to the three products? 12:08 P d 4/30/202 Allocating Joint Costs Using the Net Realizable Value Method A company manufactures three products, L-Ten, Triol, and Pioze, from a joint process. Each production run costs $12,600. 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 Eventual Market Product Gallons Cost per Gallon Price per Gallon L-Ten 3,400 $0.50 $2.10 Triol 3,900 1.10. 2,2001 1.40 4.80 6.60 Pioze Required: 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. Grades L-Ten Triol Pioze Joint Cost Allocation Total 2. What if it cost $2.10 to process each gallon of Trial beyond the split-off point? How would that affect the allocation of joint cost to the three products? 12:08 P d 4/30/202
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