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This is the question attached to the second question The following information relates to a joint production process for three products, with a total joint
This is the question attached to the second question
The following information relates to a joint production process for three products, with a total joint production cost of $150,000. There are no separable processing costs for any of the three products. What amount of joint cost is allocated to each of the three products using the physical units method? Assume that the total sales value at the split-off point for product 1 is $90,000 instead of $195,000 and the sales value of product 3 is $3,000 instead of $45,000. Assume also that, because of its relatively low sales value, the firm treats product 3 as a by-product and uses the net realizable value method for accounting for joint costs. There are no separable processing costs for product 3. What amount of joint cost would be allocated to the three productsStep by Step Solution
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