Question: Joint Products Inc produces two joint products X and V

Joint Products, Inc., produces two joint products, X and V, using a common input. These are produced in batches. The common input costs $ 8,000 per batch. To produce the final products (X and V), additional processing costs beyond the split- off point must be incurred. There are no beginning inventories. The accompanying data summarize the operations.

a. Compute the full cost of the ending inventory using net realizable value to allocate joint cost. b. If the selling prices at the split-off point (before further processing) are $ 35 and $ 1 per pound of X and V, respectively, what should the firm do regarding further processing? Showcalculations.

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  • CreatedDecember 15, 2014
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