Exercise 16-18 Net realizable value method The Convad company is one of the largest corn refiners in the world. It produces two related products-corn syrup and corn starch-using a common manufacturing process. In July 2009, Convad reported the following production and sales price information. Required: Joint costs (the cost of processing the corn up to the point of separation.) Separate production costs after the split point Initial inventory (cash register) Production and sales (cash register) Allocate the joint costs of $325,000 using the net realizable value method. Ending Inventory (Cash) Sale price per case Corn syrup $375,000 SO $12,500 SO $50 Com starch $93,750 SO $6,250 SO $25 Common costs $325,000

The Convad company is one of the largest corn refiners in the world. It produces two related products-corn syrup and corn starch-using a common manufacturing process. In July 2009 , Convad reported the following production and sales price information. Allocate the joint costs of $325,000 using the net realizable value method