Net Realizable Value Method, Decision to Sell at Split-off or Process Further Pacheco, Inc., produces two products, overs and unders, in a single process. The joint costs of this process were $50,000, and 15,000 units of overs and 36,000 units of unders were produced. Separable processing costs beyond the split-off point were as follows: overs, $20,000; unders, $23,040. Overs sall for $2.00 per unit; unders sell for $3.14 per unit Required: 1. Allocate the $50,000 joint costs using the estimated net realitzable value method. Allocated Joint Cost Overs 5,000 Unders 45,000 2. Suppose that overs could be sold at the split-off point for $1.00 per unit. Should Pacheco sell overs at split-off or process them further Overs should not be processed further as there will be $ 11,538.4 X more profit if sold at split-off