Berger Company manufactures products Delta, Kappa, and Omega from a joint process. Production, sales, and cost data
Question:
Berger Company manufactures products Delta, Kappa, and Omega from a joint process. Production, sales, and cost data for July follow. Problem 17-30Joint Cost Allocation; Missing Data(LO 17-4)1. Omega, joint cost allocation: $9,0003. Kappa, net realizable value: $20,000DeltaKappaOmegaTotalUnits produced ........................................................................................................4,0002,0001,0007,000Joint cost allocation ................................................................................................$36,000??$ 60,000Sales value at split-off .............................................................................................??$15,000$100,000Additional costs if processed further ......................................................................$ 7,000$ 5,000$ 3,000$ 15,000Sales value if processed further .............................................................................$70,000$25,000$20,000$115,000Required: 1. Assuming that joint costs are allocated using the relative-sales-value method, what were the joint costs allocated to products Kappa and Omega? 2. Assuming that joint costs are allocated using the relative-sales-value method, what was the sales value at split-off for product Delta? 3. Use the net-realizable-value method to allocate the joint production costs to the three products.