Question
Tango Company produces joint products M, N, and T from a joint process. This information concerns a batch produced in April at a joint cost
Tango Company produces joint products M, N, and T from a joint process. This information concerns a batch produced in April at a joint cost of $190,000:
| Total Separable Costs | Total Final Sales Value | ||
|---|---|---|---|
| Product | Units Produced and Sold | After Split-Off | |
| M | 17,000 | $ 18,800 | $ 230,000 |
| N | 11,000 | 16,400 | 210,000 |
| T | 12,000 | 3,800 | 39,000 |
Required:
How much of the joint cost should be allocated to each joint product using the net realizable value method?
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Cost Management A Strategic Emphasis
Authors: Edward Blocher, David Stout, Paul Juras, Gary Cokins
6th Edition
78025532, 978-0077523732, 77523733, 978-0078025532
