Question

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.


Required:
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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