Webster Company produces 20,000 units of product A, 15,000 units of product B, and 18,500 units of product C from the same manufacturing process at a cost of $425,000. A and B are joint products, and C is regarded as a by-product. The unit selling prices of the products are $40 for A, $30 for B, and $2 for C. None of the products require separable processing. Of the units produced, Webster Company sells 13,000 units of A, 14,000 units of B, and 18,500 units of C. The firm uses the net realizable value method to allocate joint costs and by-product costs. Assume no beginning inventory.

Required

1. What is the value of the ending inventory of product A?

Ending inventory

2. What is the value of the ending inventory of product B?

Ending inventory?

Answer rating: 100% (QA)

Total Joint cost to allocate Manufacturing cost Sales of By product ... View the full answer