MARKET VALUE METHOD A - ALLOCATE THE JOINT COST USING THE NET REALIZABLE VALUE METHOD B - ALLOCATE THE JOINT COST USING SALES VALUE SPLIT OFF METHOD

Q2. Vreeland Incorporation manufactures three products X, Y and Z, from a joint process. The joint cost total $60,000. Additional information is as follows: Products Units Produced 6,000 4,000 2,000 12.50 5,000 Required: Allocation of the production cost and Total Cost using Market Value Method. XXN Y Z Additional Cost and Market Value process Further if Additional Cost Market Value at split off $6.66 8.75 $ 9,000 7,000 Ultimate Market Value $ 55,000 45,000 30,000