Ten tons of sugar beets yields 2 tons of sugar (10 tons x 0.2) and 4 tons of feed (10 tons x 0.4)
|
|
Sugar |
Feed |
Total |
|
Final sales value |
$800 |
$800 |
$1,600 |
|
Less additional processing costs |
–0– |
–0– |
–0– |
|
Net realizable value at split off point |
$800 |
$800 |
$1,600 |
|
Proportionate share |
|
|
|
|
$800 + 1,600 |
50% |
|
|
|
$800 + 1,600 |
|
50% |
|
|
Allocated joint costs |
|
|
|
|
($60 + $40) x 10 tons x 50% |
$500 |
|
|
|
($60 + $40) x 10 tons x 50% |
|
$500 |
|