E6-14 Page 354

Computing joint costssales value at split-off and net realizable value methods

LeMoyne Manufacturing Inc.s joint cost of producing 2,000 units of Product X, 1,000 units of Product Y, and 1,000 units of Product Z is $50,000. The unit sales values of the three products at the split-off point are Product X$30, Product Y$100, and Product Z $90. Ending inventories include 200 units of Product X, 300 units of Product Y, and 100 units of Product Z.

Assume that Product Z can be sold for $120 a unit if it is processed after split-off at a cost of $10 a unit.

Compute the amount of joint cost that would be allocated to Product X.

Compute the amount of joint cost that would be allocated to Product y

Compute the amount of joint cost that would be allocated to Product Z