Question
Using the Net Realizable Value (NRV) Method, allocate these joint costs. Relevant information is provided within the table below. However, the table happens to be
Using the Net Realizable Value (NRV) Method, allocate these joint costs. Relevant information is provided within the table below. However, the table happens to be incomplete.
| Byproducts of Wood | Paper | Hardwood | Total |
| Final Sales Value | $450,000 | $500,000 | $950,000 |
| Deduct: Separable Costs | $30,000 | $65,000 | $95,000 |
| Net Realizable Value at Splitoff Point | $420,000 | $435,000 | $855,000 |
| Weighting of NRV | ? | ? | (leave blank) |
| Joint Costs Allocated | ? | ? | ? |
| Production Cost per Unit | ? | ? | (leave blank) |
Question #1: Complete the table by calculating the unknown values. What are those values?
Question #2: Which byproduct contains a larger production cost per unit: paper or hardwood?
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Financial Accounting
Authors: Robert Libby, Patricia Libby, Frank Hodge
11th Edition
1264229739, 9781264229734
