Assume that the total sales value at the split-off point for product 1 is $50,000 instead of

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Assume that the total sales value at the split-off point for product 1 is $50,000 instead of $130,000 and the sales value of product 3 is $2,000 instead of $20,000. Assume also that, because of its relatively low sales value, the firm treats product 3 as a by-product and uses the net realizable value method for accounting for joint costs. What amount of joint cost would be allocated to the three products?
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Cost Management A Strategic Emphasis

ISBN: 978-0077733773

7th edition

Authors: Edward Blocher, David Stout, Paul Juras, Gary Cokins

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