Find NRV net realisable value of By product Z

Check your understanding of what we learnt in the video lessons by answering the questions below. JP Pte Lid (JP) has a joint production process that produces joint product A, joint product B and a by-product Z. A summary of a recent month's activity at JP is shown below: A Units produced and sold 60,000 80,000 10,000 Unit selling price at split off $ 6.00 $8.00 $0.25 Additional processing cost $100,000 $400,000 Unit selling price after further processing $8.60 $12.80 JP incurs 5 cents per unit to sell Z. The joint production cost incurred was $482,000. The net realisable value of the by-product is used to reduce the joint production cost before the joint production cost is allocated to the main joint products