Computing Joint Costs $-$ Sales Value at Split$-$Off and Net Realizable Value Methods

D$.$L$.$ Manufacturing Inc.$\text{'}$s joint cost of producing $1,000$ units of Product A$,500$ units of Product B$,$ and $500$ units of Product C is $$20,000.$

The unit sales values of the three products at the split$-$off point are

Product A$-$$$20,$

Product B$-$$$200,$

Product C$-$$$160$

Ending inventories include $100$ units of Product A$,200$ units of Product B$,$ and $300$ units of Product C$.$

$($In your interim calculations, round sales value percentages and allocated joint costs to two decimal places.$)$

a$.$ Compute the amount of joint cost that would be included in the ending inventory valuation of the three

products on the basis of their sales value at split off.

b$.$ Assume that Product C can be sold for $$200$ a unit if it is processed after split$-$off at a cost of $$25$ a unit. Compute the amount of joint cost that would be included in the ending inventory valuation of the three products on the basis of their net realizable values.