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PetToy Products produces two products, A and B, in a single process. In 2009, the joint costs of this process were $25,000. In addition, 4,000
PetToy Products produces two products, A and B, in a single process. In 2009, the joint costs of this process were $25,000. In addition, 4,000 units of A and 6,000 units of B were produced. Separable processing costs beyond the split-off point were A - $10,000; B - $20,000. A sells for $10.00 per unit; B sells for $7.50 per unit.
- What amount of joint costs will be allocated to each product using the physical units method?
- What amount of joint costs will be allocated to each product using the estimated net realizable value method?
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