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Company manufactures two products, A and B from a joint process.It costs the company 800,000 in a joint process to product 1,000units of A and 5,000 units of B. Both of the products can be soldat the split-off point or they can be processed further tocompletion. To process further the company incurs separable costsof $81 per units for A, and $35 for units of B. A and B can be soldfor $100, and $200 respectively at completion.

What is the amount of total costs assigned to the two productsassuming joint costs are allocated using physical unit’smethod?

What is the amount of joint costs assigned to products assumingjoint costs are allocated using final sales value method?

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Deanna Hettinger
Deanna HettingerLv2
28 Sep 2019

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Company manufactures two products, A and B from a joint process.It costs the company 800,000 in a joint process to product 1,000units of A and 5,000 units of B. Both of the products can be soldat the split-off point or they can be processed further tocompletion. To process further the company incurs separable costsof $81 per units for A, and $35 for units of B. A and B can be soldfor $100, and $200 respectively at completion.

What is the amount of separable costs assigned to products X andY assuming joint costs are allocated using net realizable valuemethod?

Corporation manufactures two products, X and Y, from a jointprocess. It costs corporation $600,000 in a joint process toproduce 3,000 units of x and 2,000 units of Y. Both products can besold at the split-off point or they can be processed furhter tocompletion. The company will incur separable costs of #45 per unitsfor X and $90 for Y to process further. X and Y can sold for $240and $300, respectively, at completion.

REQUIRED:

A. What is the amount of separable costs assigned to products Xand Y assuming that joint costs are allocated using the netrealizable value method?

B. What is the amount of joint costs assigned to products X andY assuming that joint costs are allocated using the final salesvalue method>

C. What is the amount of total costs assigned to products X andY assuming that joint costs are allocated using the physical unit;smethod?

D. Should product X be sold at the split-off point or proceedfurther assuming that it can sold for $165 at split-off? Justifyyour answer with numbers.

NESA corporation manufactures two products, A and B, from ajoint process. It costs NESA $500,000 in a joint process to produce3,000 units of A and 2000 units of B. Both products can be sold athte split-off point or they can be processed fruther to copletion.The company will incur separable costs of $40 per units for A and$60 for B to process further. A and B can be sold for $160 and$200, respectively, at completion.

Required

a)What is the amount of separable costs assigned to products Aand B assuming that joint costs are allocated using the netrealizable value method?

b) What is the amount of joint costs assigned to products A andB assuming that joint costs are allocated using the physical unitsmethod?

c) What is the amount of total costs assigned to products A andB assuimng that joint costs are allocated uisng the physical unitsmethod?

d) should product A be sold at the split-off point or processedfurther assuming that it can be sold for $110 at split-off? Justifyanswer with numbers

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