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Net Realizable Value Method, Decision to Sell at Split$-$off or Process Further for $$3\mathrm{.}14$ per unit.

Required:

Allocate the $$50,000$ joint costs using the estimated net realizable value method.

Allocated Joint Cost

Overs

Unders

$2.$ Suppose that overs could be sold at the split$-$off point for $$1\mathrm{.}80$ per unit. Should Pacheco sell overs at split$-$off or process them further?

Overs should not $$ be processed further as there will be $$

$$ profit if sold at split$-$off.