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Just wanted to make sure my work and answers are correct! Please include your work, thank you in advance! Harmon Inc, manufactures two products from
Just wanted to make sure my work and answers are correct! Please include your work, thank you in advance!
Harmon Inc, manufactures two products from a joint process, product A and product B. A standard production run incurs joint costs of $45,000 and results in 1,500 units of product A and 2,500 units of product B. Product A sells for $50.00 per unit and Product B sells for $20.00 per unit. A. If no further processing occurs after the split-ff point, how much of the joint costs are allocated to Product A and B using the physical measure method? B. If no further processing occurs after the split-off point, how much of the joint cost is allocated to Product A and B using the sales value at split-off method? C. Assume that product A is not marketable at the split-off point but must have additional processing costs that cost $10,000 per production run. During the process 200 units are unavoidably lost and have no value. The remaining units of product A are sold at $52.00 per unit. Product B although salable immediately at the split-off point, is coated with a clear coat preservative that costs $15,000 per production run. Product B is then sold for $21.50 per unit. Using the net realizable value method, how much of the joint product costs are allocated to Product A and BStep by Step Solution
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