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Net Realizable Value Method, Dedsion to Sell at Split-off or Process Further Pacheco, Inc. produces two products, overs and unders, in a single process. The
Net Realizable Value Method, Dedsion to Sell at Split-off or Process Further Pacheco, Inc. produces two products, overs and unders, in a single process. The joint costs of this process were 160,000, and 15.000 units of overs and 35,000 units of unders were produced. Separable processing costs beyond the split off point were as follows: overs, $20,000 unders, $23,040. Overssell for $2.00 per unit unders sell for $3.14 per unit Required: 1. Allocate the 150,000 joint costs using the estimated netreb e value method Allocated in Cost Overs 2. Suppose that overs could be sold at the s oft pole for $1.00 per unit. Should Pacheco sell over at stoff of process them further be proceed further as there will be profitsoldatto
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