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Net Realizable Value Method, Decision to Sell at Spit-off or Process Further Arvin, Inc., produces ten products, ins and outs, in a single process.
Net Realizable Value Method, Decision to Sell at Spit-off or Process Further Arvin, Inc., produces ten products, ins and outs, in a single process. The joint costs of this process were $50,000, and 15,000 units of ins and 35,000 units of outs were produced. Separable processing costs beyond the spin-off point were as follows: ins, $110,000; outs, $435,000. Ins sell for $8.00 per unit; outs sell for $15.00 per unit. Required: 3. Allocate the $50,000 joint costs using the estimated net realizable value method. Allocated Joint Cost Ins Outs 2. Suppose that ins could be sold at the split-off point for $7.00 per unit. Should Arvin sell ins at split-off or process them further? be processed further as there will be s Ins profit if sold at split-off
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