(Net realizable value method) Ankara Processing produces three seafood products in a single process. The joint cost is $32,000.
|
Product |
Units Produced |
Unit Costs at Split Off |
Selling Price |
|
X |
9,000 |
$0.75 |
$4.00 |
|
Y |
10,000 |
1.00 |
4.25 |
|
Z |
1,000 |
0.10 |
0.50 |
a. Allocate the joint cost based on net realizable value at split off. If necessary, use the net realizable value method for accounting for any by products.
b. Determine the value of the inventory, assuming the following finished goods inventories:
|
Product |
Units |
|
X |
600 |
|
Y |
900 |
|
Z |
54 |