Question
The following questions relate to Kyle Company, which manufactures products KA, KB, and KC from a joint process. Joint product costs were $198,000. Additional information
The following questions relate to Kyle Company, which manufactures products KA, KB, and KC from a joint process. Joint product costs were $198,000. Additional information follows:
| If Processed Further | ||||||||||
| Product | Units Produced | Sales Value at Split-Off | Sales Values | Additional Costs | ||||||
| KA | 82,000 | $ | 252,000 | $ | 350,000 | $ | 53,000 | |||
| KB | 57,400 | 220,500 | 250,000 | 44,000 | ||||||
| KC | 24,600 | 157,500 | 220,000 | 29,000 | ||||||
Required:
a. Assuming that joint product costs are allocated using the physical quantities (units produced) method, what was the total cost of product KA (including $53,000 if processed further)? (Do not round your intermediate calculations.)
b. Assuming that joint product costs are allocated using the sales value at split-off (net realizable value method), what was the total cost of product KB (including the $44,000 if processed further)? (Do not round your intermediate calculations.)
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