Question: Net Realizable Value Method, Decision to Sell at Split-off or Process Further beyond the split-off point were as follows: overs, $18,000; unders, $16,760. Overs sell

Net Realizable Value Method, Decision to Sell at Split-off or Process

Net Realizable Value Method, Decision to Sell at Split-off or Process Further beyond the split-off point were as follows: overs, $18,000; unders, $16,760. Overs sell for $2.00 per unit; unders sell for $3.14 per unit. Required: 1. Allocate the $50,000 joint costs using the estimated net realizable value method, 2. Suppose that overs could be sold at the split-off point for $1.80 per unit. Should Pacheco sell overs at split-off or process them further? Overs be processed further as there will be profit if sold at split-off

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