Question
Marlon Products produces three products DBB-1, DBB-2, and DBB-3 from a joint process. Each product may be sold at the split-off point or processed further.
Marlon Products produces three products DBB-1, DBB-2, and DBB-3 from a joint process. Each product may be sold at the split-off point or processed further. Additional processing requires no special facilities, and production costs of further processing are entirely variable and traceable to the products involved. Important information about Marlon production, sales, and costs follows.
DBB-1 DBB-2 DBB-3 Total
Units Sold 22,000 43,000 80,000 145,000
Price (after addt'l processing) $30 $15 $40
Separable Processing cost $441,000 $180,000 $263,000 $884,000
Units Produced 22,000 43,000 80,000 145,000
Total Joint Cost $4,100,000
Sales Price at Split-off $25 $35 $55
This amount of joint costs allocated to product DBB-3 using the net realizable value method is (calculate all ratios and percentages to 2 decimal places, for example 33.33%, and round all dollar amounts to the nearest whole dollar
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started