Question
The following information relates to a joint production process for three products, with a total joint production cost of $145,000. There are no separable processing
The following information relates to a joint production process for three products, with a total joint production cost of $145,000. There are no separable processing costs for any of the three products.
Product Sales Value at Split-Off Units at Split-Off1$174,000560272,500980343,5001,260$290,0002,800
Brief Exercise 7-20 [LO 7-6]
Assume that the total sales value at the split-off point for product 1 is $72,500 instead of $174,000 and the sales value of product 3 is $2,900 instead of $43,500. Assume also that the firm treats product 3 as a joint product andÂ
uses the net realizable value method for accounting for joint costs. There are no separable processing costs for product 3. What amount of joint costs would be allocated to the three products using the relative sales value method?
(Round your intermediate percentage values to 2 decimal places (i.e. 24.35%) and final answers to nearest whole dollar amount.)
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