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Product A is processed further in the salting department at a cost of $27,000. It yields 12,000 pounds of . Product B (raw peanuts) is

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Product A is processed further in the salting department at a cost of $27,000. It yields 12,000 pounds of . Product B (raw peanuts) is sold without further processing at $3 per pound, . Product C is considered a byproduct and is processed further in the paste department at a cost of $12,000. It yields 16,000 pounds of peanut butter, which are sold for S6 per pound. The company wants to make a gross margin of 10% of revenues on product C and needs to allow 20% of revenues for marketing costs on product C. An overview of operations follows: Separable Costs Joint Costs $180,000 1 12,000 pounds Salting Department Processing $27,000 Salted Peanuts 12.000 pounds $12/16 Raw Peanuts 65,000 pounds $3/lb Peanuts Department Processing of 150,000 lb Paste Department Processing $12.000 Peanut Butter 16,000 pounds $6/1b 16,000 pounds Splitoff Point 16-31 Joint costs and bypromet (W. Crum adapted) Royston, Inc., is a large food-processing company. It processes 150,000 pounds of peanuts in the peanuts department at a cost of $180,000 to yield 12,000 pounds of product A, 65,000 pounds of product B, and 16,000 pounds of product C. salted peanuts, which are sold for $12 per pound. allocating joint costs . Deduct the NRV of the byproduct produced from the joint cost of products Aande 2. Compute unit costs per pound for products A, B, and C, treating all three as joint products and alloca ing joint costs by the NRV method. 1. Compute unit costs per pound for products A, B, and C, treating C as a byproduct. Use the NRV method for

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