Net Realizable Value Method with By Products
Grand Company manufactures products Alpha and Beta from a joint process, which also yields a by product, Gamma. Grand accounts for the revenues from its by product sales as other income. Additional information follows:
|
|
Alpha |
Beta |
Gamma |
Total |
|
Units produced |
45,000 |
27,000 |
18,000 |
90,000 |
|
Allocated joint costs |
? |
? |
? |
$280,800 |
|
Sales value at split off |
$300,000 |
$240,000 |
$60,000 |
$600,000 |
Required
Assuming that joint product costs are allocated using the net realizable value at split off approach, what was the joint cost allocated to product Beta?