Question
The Mallak Company produced three joint products at a joint cost of $140,000. Two of these products were processed further. Production and sales were: Product
The Mallak Company produced three joint products at a joint cost of $140,000. Two of these products were processed further. Production and sales were:
| Product | Weight | Sales | Additional Processing Costs | |||||
| P | 320,000 | lbs. | $ | 280,000 | $ | 220,000 | ||
| Q | 120,000 | lbs. | 50,000 | -0- | ||||
| R | 120,000 | lbs. | 220,000 | 120,000 | ||||
Assume Q is a by-product and Mallak uses the cost reduction method of accounting for by-product cost. If estimated net realizable value is used, how much of the joint costs would be allocated to product R?
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1st Edition
0367862751, 978-0367862756
