Question
Exercise 11-47 (Algo) Net Realizable Value Method (LO 11-3) Barrett Chemicals manufactures four chemicals, Chem-1, Chem-2, Chem-3, and Chem-4, from a joint process. The total
Exercise 11-47 (Algo) Net Realizable Value Method (LO 11-3) Barrett Chemicals manufactures four chemicals, Chem-1, Chem-2, Chem-3, and Chem-4, from a joint process. The total joint costs in May were $564,000. Additional information follows: Product Units Produced Sales Value at Split-Off If Processed Further Additional Costs Sales Values Chem-1 294,000 $ 226,000 $ 33,300 $ 266,000 Chem-2 182,000 270,000 30,000 296,000 Chem-3 198,000 155,600 25,500 186,000 Chem-4 150,000 252,400 26,900 276,000 824,000 $ 904,000 $ 115,700 $ 1,024,000
Required: Barrett Chemicals uses the net realizable value method to allocate joint costs. What joint costs would be allocated to each product in May?
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