Point of Sales Value Method and Net Realizable Value Method

The company "ALL FRESH EXCEPT CHICKEN" buys birds to process and distribute them for human consumption. From the process of these birds, 3 products are obtained: "breasts, thighs and wings". During the month of November the company acquired 50 birds as raw material at a total cost of $380.00 and incurred joint conversion costs of $70.00

In addition, the following data is available:

Using the above information, allocate the joint costs of production for the three products using the following methods:

Sales value method at the point of separation. Net realizable value method.

Product	Process Quantity	Price at split point	Additional cost per bird	Bird final price
Poultry Breast	50	$70	Xxx	Xxx
Thigh	100	$50	10	100
Chicken wings	100	$40	Xxx	Xxx