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Joint Cost Allocabon-Net. Resalizable Value Method Nature's Garden Inc, produces wood chips, wood pu'p, and mulch. These products are produced through harvesting trees and sending
Joint Cost Allocabon-Net. Resalizable Value Method Nature's Garden Inc, produces wood chips, wood pu'p, and mulch. These products are produced through harvesting trees and sending the logs through a wood chipper machine. One batch of logs produces 20,400 cuble yards of wood chips, 10,400 cublic yards of mulch, and 9,200 cubic yards of wood pulp. The joint production process costs a total of $34,000 per batch. After the split-of point, wood thips are immediately sold for $25 per cublic yard while wood pulp and mulch are processed further. The market value of the wood pulp and mulch at the split-off point is estimated to be 522 and 525 per cubic yard, respectively. The additionat production process of the wood pulp costs $5 per cubic yard, after which it is sold for 330 per cublic yard. The additional production process of the mulch costs $4 per cubic yard, after which it is sold for $27 per cubic yard
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