Net realizable value method Convad Company is one of the world’s leading corn refiners. It produces two joint products—corn syrup and corn starch—using a common production process. In July 2009, Convad reported the following production and selling-price information:

Allocate the $325,000 joint costs using the NRV method.

Transcribed Image Text:

Joint Costs Corn Syrup Corn Starch Joint costs (costs of processing corn to splitoff point) Separable cost of processing beyond splitoff point Beginning inventory (cases) Production and Sales (cases) Ending inventory (cases) Selling price per case $325,000 $375,000 $93,750 12,500 6,250 50 25