Product Details:

• Main Product:
  • Sales Value at Split-off: $500,000
  • Separate Costs after Split-off: $200,000
  • Joint Costs Incurred: $150,000

• By-Product:
  • Sales Value at Split-off: $100,000
  • Separate Costs after Split-off: $50,000
  • Joint Costs Incurred: $30,000

Requirements:

• Allocate joint costs between the main product and the by-product using the sales value at split-off method.
• Calculate the total cost for each product after allocation.
• Present the results in a detailed table format.

Discuss the implications of the joint cost allocation on pricing decisions