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Fact pattern: Atlas Foods produces the following three supplemental food products simultaneously through a refining process costing $85,000. The joint products, Alfa and Betters,
Fact pattern: Atlas Foods produces the following three supplemental food products simultaneously through a refining process costing $85,000. The joint products, Alfa and Betters, have a final selling price of $8 per pound and $5 per pound, respectively, after additional processing costs of $3 per pound of each product are incurred after the split-off point. Morefeed, a by-product, is sold at the split-off point for $2.50 per pound. Alfa Betters 15,000 pounds of Alta, a popular but relatively rare grain supplement having a caloric value of 8,800 calories per pound 5,000 pounds of Betters, a flavoring material high in carbohydrates with a caloric value of 12,000 calories pe r pound Morefeed 2,000 pounds of Morefeed, used as a cattle feed supplement with a caloric value of 1,000 calories per pound Assuming Atlas Foods inventories Morefeed, the by-product, the joint cost to be allocated to Betters using the net realizable value method is
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