Question
The following questions relate to Kyle Company, which manufactures products KA, KB, and KC from a joint process. Joint product costs were $190,000. Additional information
The following questions relate to Kyle Company, which manufactures products KA, KB, and KC from a joint process. Joint product costs were $190,000. Additional information follows.
| If Processed Further | ||||||||||
| Product | Units Produced | Sales Value at Split-Off | Sales Values | Additional Costs | ||||||
| KA | 82,000 | $ | 264,000 | $ | 320,000 | $ | 48,000 | |||
| KB | 57,400 | 231,000 | 290,000 | 41,000 | ||||||
| KC | 24,600 | 165,000 | 230,000 | 30,000 | ||||||
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 $48,000 if processed further)?
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 $41,000 if processed further)?
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