https://gyazo.com/12175bedd57c0daf57a1a4b183ddabe5 Neary Co. produces three prod
ID: 2411042 • Letter: H
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Neary Co. produces three products — X, Y, and Z — from a joint process. Each product may be sold at the split-off point or processed further. Additional processing requires no special facilities, and production costs of further processing are entirely variable and traceable to the products involved. Last year all three products were processed beyond split-off. Joint production costs for the year were $60,000. Sales values and costs needed to evaluate Neary's production policy follow.
Neary Co. produces three products — X, Y, and Z — from a joint process. Each product may be sold at the split-off point or processed further. Additional processing requires no special facilities, and production costs of further processing are entirely variable and traceable to the products involved. Last year all three products were processed beyond split-off. Joint production costs for the year were $60,000. Sales values and costs needed to evaluate Neary's production policy follow.
The amount of joint costs allocated to product X using the sales value at split-off method is:Explanation / Answer
Solution:
Total sale value at split off point = $34,300 + $19,000 + $15,000 = $68,300
Sale value at split off for product X = $34,300
Joint cost to be allocated to product X = $60,000 * $34,300 / $68,300 = $30,132
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