Allocating Joint Costs Using the Net Realizable Value Method A company manufactures three products, L-Ten, Triol, and Pioze, from a joint process. Each production run costs $12,600. None of the products can be sold at split-off, but must be processed further. Information on one batch of the three products is as follows Eventual Market Further Processing Cost per Gallon Product Gallons Price per Gallon L-Ten 3,000 $0.50 $2.20 Triol 3,500 0.90 5.20 Piaze 2,500 1.40 6.50 Required: 1. Allocate the joint cost to L-Ten, Triol, and Pioze using the net realizable value method. Round your allocation percentages to four decimal places and round the allocated costs to the nearest dollar. Joint Cost Grades Allocation L-Ten 1,755 X Triol 5,870 X Pioze 4,973 X Total $ 12,598 2. What if it cost $1.90 to process each gallon of Trial beyond the split-off point? How would that affect the allocation of joint cost to the three products? Round your allocation percentages to four decimal places and round the allocated costs to the nearest dal - Joint Cost Grades Allocation L-Ten 1,969 X Triol 5,053 X Ploze 5,578 x Total 12,600 Foedback Check My Wor 1. The net realizable value method is used when one or more of the joint products cannot be sold at split off. In this case, a hypothetical market value is constructed so that joint cost allocation can be done as close to the split-off point as possible. Corne example of how to allocate using this method. 2. Show the effect of the change in cast using the example on Cornerstone 7.10