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Problem 4(4 points). Mainstream Corporation manufactures two products, I and II, from a joint process. A production run costs $20,000 and results in 500
Problem 4(4 points). Mainstream Corporation manufactures two products, I and II, from a joint process. A production run costs $20,000 and results in 500 units of I and 2,000 units of II. Both products must be processed past the split-off point, incurring separable costs of $5 per unit for I and $10 per unit for II. The market price is $25 for I and $20 for II. Required: a. Allocate joint production costs to each product using the physical units method. b. Allocate joint production costs to each product using the net realizable value method. Problem 5(4 points). Cumadin Corporation, which manufactures products W, X, Y, and Z through a joint process costing $18,000, has the following data for 2016: Product Units Produced Sales Value at Split-Off W 10,000 $5,000 X 6,000 2,500 Y 16,000 3,000 Z 8,000 4,500 Required: What is the amount of joint costs assigned to Product X using the sales-value-at-split-off method?
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