Weinberg Canning produces fillet, smoked salmon, and salmon remnants in a single process. The same amount of disposal cost is incurred whether a product is sold at split-off or after further processing. In October 2010, the joint cost of the production process was $142,000.

a. The remnants are considered a by-product of the process and are sold to cat food processors. Allocate the joint cost based on approximated net realizable value at split-off. Use the net realizable value method to account for the by-product.
b. Determine the value of ending Finished Goods Inventory, assuming that 4,000 pounds of salmon fillets, 2,400 pounds of smoked salmon, and 350 pounds of salmon remnants were sold. (Round cost per pound to the nearestpenny.)

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Product Fillet Smoked Remnants Pounds Produced 18,000 20,000 2,000 Separate Cost $3.00 5.20 030 Final Selling Price $16.00 13.00 1.50