Harmon Inc. produces joint products L, M, and N from a joint process. Informatio

Question

Harmon Inc. produces joint products L, M, and N from a joint process. Information concerning a batch produced in May at a joint cost of $75,000 was as follows: L M N Total Separable Processing cost $10,000 $25,000 $2,000 $37,000 Units Produced 1,200 2,500 4,300 8,000 Sales Value (after addt’l processing) $60,000 $50,000 $7,000 $117,000.

The amount of joint costs allocated to product N using the net realizable value method is (calculate all ratios and percentages to 4 decimal places, for example 33.3333%, and round all dollar amounts to the nearest whole dollar): $3,614. $4,688. $23,438. $33,434. $46,875.

Explanation / Answer

L M N Total Sales 60000 50000 7000 117000 Costs -10000 -25000 -2000 -37000 NRV 50000 25000 5000 80000 Cost for N 75000*5000/80000 4687.5 The correct option is B. $ 4688

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