Joint Cost Allocation Net Realizable Value Method Nature s Garden Inc. produces wood chips, wood pulp, and
Fantastic news! We've Found the answer you've been seeking!
Question:
Joint Cost AllocationNet Realizable Value Method
Natures Garden Inc. produces wood chips, wood pulp, and mulch. These products are produced through harvesting trees and sending the logs through a wood chipper machine. One batch of logs produces cubic yards of wood chips, cubic yards of mulch, and cubic yards of wood pulp. The joint production process costs a total of $ per batch. After the splitoff point, wood chips are immediately sold for $ per cubic yard while wood pulp and mulch are processed further. The market value of the wood pulp and mulch at the splitoff point is estimated to be $ and $ per cubic yard, respectively. The additional production process of the wood pulp costs $ per cubic yard, after which it is sold for $ per cubic yard. The additional production process of the mulch costs $ per cubic yard, after which it is sold for $ per cubic yard.
Allocate the joint costs of production to each product using the net realizable value method.
Related Book For
Forensic And Investigative Accounting
ISBN: 9780808056300
10th Edition
Authors: G. Stevenson Smith D. Larry Crumbley, Edmund D. Fenton
Posted Date: