Question
Corporation manufactures two products, X and Y, from a joint process. It costs corporation $600,000 in a joint process to produce 3,000 units of x
Corporation manufactures two products, X and Y, from a joint process. It costs corporation $600,000 in a joint process to produce 3,000 units of x and 2,000 units of Y. Both products can be sold at the split-off point or they can be processed furhter to completion. The company will incur separable costs of #45 per units for X and $90 for Y to process further. X and Y can sold for $240 and $300, respectively, at completion.
REQUIRED:
A. What is the amount of separable costs assigned to products X and Y assuming that joint costs are allocated using the net realizable value method?
B. What is the amount of joint costs assigned to products X and Y assuming that joint costs are allocated using the final sales value method>
C. What is the amount of total costs assigned to products X and Y assuming that joint costs are allocated using the physical unit;s method?
D. Should product X be sold at the split-off point or proceed further assuming that it can sold for $165 at split-off? Justify your answer with numbers.
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