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The Firm incurs $3,000,000 in joint costs during the production of 4 products X, B, C, and D. Additional information includes the following: Units of

The Firm incurs $3,000,000 in joint costs during the production of 4 products X, B, C, and D. Additional information includes the following:

Units of Production (lbs.)

Weighting

Market Value at Split-Off

Separable Costs

Gross Revenues

X:

10,000

1.00

2,300,000

200,000

3,000,000

B:

20,000

1.50

2,800,000

400,000

4,200,000

C:

30,000

2.50

1,000,000

700,000

2,000,000

D:

6,000

3.00

40,000

300,000

720,000

Calculate the joint cost allocation ONLY FOR PRODUCT X using the following methods:

Net Realizable Value ANSWER: ___________________

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