Question: Bixel Components manufactures products A1 and A2 from a joint process. Total joint costs are $250,000. The sales value at split-off was $292,500 for 2,700
Bixel Components manufactures products A1 and A2 from a joint process. Total joint costs are $250,000. The sales value at split-off was $292,500 for 2,700 units of product A1 and $157,500 for 900 units of product A2.
Required
Assuming that total joint costs are allocated using the net realizable value at split-off approach, what amount of the joint costs was allocated to product A1?
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