C Net Real Value Method, Decision to Sell at Split-off or Process Further Pacheco, Inc. produces two products, evers and unders, in a single process. The joint costs of this process were $60,000, and 15,000 units of overs and 35,000 units of unders were produced. Separable processing costs beyond the split-off point were as follows: overs, $20,000, unders, $19,900. Over sell for $2.00 per unit; underssell for $3.14 per unit. Required: 1. locate the $50,000 joint costs using the estimated net realizable value method. Allocated Joint Cost Overs Unders 2. Suppose that oves could be sold at the split-off point for $1.80 per unit. Should Pacheco sell overs at split-off or process them further? Overs should not be processed further as there will be more profit if sold at split-off 1. The netrabie value method is used when one or more of the Joint products cannot be sold at spit off. In this case, a hypothetical market values constructed so that it cost allocation can be done as close to the split-off point as possible. 2. See Comerstone 7.10 and compare what would happen if sold at split off and what would happen with further processing, My Work Previous All work saved Save and Submission for Grading