Joint Cost Allocation$-$Market Value at Split$-$off Method

Sugar Empire, Inc., jointly produces raw sugar, granulated sugar, and caster sugar. After the split$-$off point, raw sugar is immediately sold for $$0\mathrm{.}24$ per pound, while granulated and caster sugar

are processed further. The market value of the granulated sugar and caster sugar is estimated to both be $$0\mathrm{.}25$ at the split$-$off point. One batch of joint production costs $$1,700$ and yields $2,500$

pounds of raw sugar, $3,600$ pounds of granulated sugar, and $2,000$ pounds of caster sugar at the split$-$off point.

Allocate the joint costs of production to each product using the market value at split$-$off method.

Joint Cost Allocation$-$Market Value at Split$-$off Method

Sugar Empire, Inc., jointly produces raw sugar, granulated sugar, and caster sugar. After the split$-$off point, raw sugar is immediately sold for $$0\mathrm{.}24$ per pound, while granulated and caster sugar

are processed further. The market value of the granulated sugar and caster sugar is estimated to both be $$0\mathrm{.}25$ at the split$-$off point. One batch of joint production costs $$1,700$ and yields $2,500$

pounds of raw sugar, $3,600$ pounds of granulated sugar, and $2,000$ pounds of caster sugar at the split$-$off point.

Allocate the joint costs of production to each product using the market value at split$-$off method.

Joint Cost Allocation$-$Market Value at Split$-$off Method

Sugar Empire, Inc., jointly produces raw sugar, granulated sugar, and caster sugar. After the split$-$off point, raw sugar is immediately sold for $$0\mathrm{.}24$ per pound, while granulated and caster sugar

are processed further. The market value of the granulated sugar and caster sugar is estimated to both be $$0\mathrm{.}25$ at the split$-$off point. One batch of joint production costs $$1,700$ and yields $2,500$

pounds of raw sugar, $3,600$ pounds of granulated sugar, and $2,000$ pounds of caster sugar at the split$-$off point.

Allocate the joint costs of production to each product using the market value at split$-$off method.

Joint Cost Allocation$-$Market Value at Split$-$off Method

Sugar Empire, Inc., jointly produces raw sugar, granulated sugar, and caster sugar. After the split$-$off point, raw sugar is immediately sold for $$0\mathrm{.}24$ per pound, while granulated and caster sugar

are processed further. The market value of the granulated sugar and caster sugar is estimated to both be $$0\mathrm{.}25$ at the split$-$off point. One batch of joint production costs $$1,700$ and yields $2,500$

pounds of raw sugar, $3,600$ pounds of granulated sugar, and $2,000$ pounds of caster sugar at the split$-$off point.

Allocate the joint costs of production to each product using the market value at split$-$off method.

Joint Cost Allocation$-$Market Value at Split$-$off Method

Sugar Empire, Inc., jointly produces raw sugar, granulated sugar, and caster sugar. After the split$-$off point, raw sugar is immediately sold for $$0\mathrm{.}24$ per pound, while granulated and caster sugar

are processed further. The market value of the granulated sugar and caster sugar is estimated to both be $$0\mathrm{.}25$ at the split$-$off point. One batch of joint production costs $$1,700$ and yields $2,500$

pounds of raw sugar, $3,600$ pounds of granulated sugar, and $2,000$ pounds of caster sugar at the split$-$off point.

Allocate the joint costs of production to each product using the market value at split$-$off method.