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Convad Company is one of the world's leading corn refiners. It produces two joint products - corn syrup and corn starch-using a common production process.
Convad Company is one of the world's leading corn refiners. It produces two joint products - corn syrup and corn starch-using a common production process. In July 2009, CConvad reported the following production and selling-price informtation:
| Corn Syrup | Corn Starch | Joint costs | |
| Joint Costs (costs of processing corn to splitoff point) | $325,000 | ||
| Separable cost of processing beyond splitoff point | $375,000 | $93,750 | |
| Beginning Inventory (Cases) | 0 | 0 | |
| Production and sales (cases) | 12500 | 6250 | |
| Ending inventory (cases) | 0 | 0 | |
| Selling Price per case | 50 | 25 |
|
Allocate the $325,000 joint costs using the NRV method.
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