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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Products 200 lbs. Quantities produced per batch Additional processing costs per batch beyond split-off 1.800 400 lbs. $3.400 Unit selling prices of completely processed products Ending inventory $401b. $10/lb. 2,000 lbs. 1000 Ibs.