Joint and By-Product Costing (Appendix) Webster Company produces 25,000 units of productA, 20,000 units of product B, and 10,000 units of product C from the same manufacturing processat a cost of $340,000. A and B are joint products, and C is regarded as a by-product. The unit sellingprices of the products are $30 for A, $25 for B, and $1 for C. None of the products requires separableprocessing. Of the units produced, Webster Company sells 18,000 units of A, 19,000 units of B, and10,000 units of C. The firm uses the net realizable value method to allocate joint costs and by-productcosts. Assume no beginning inventory.Required1. What is the value of the ending inventory of product A?2. What is the value of the ending inventory of product B?
Joint and By-Product Costing (Appendix) Webster Company produces 25,000 units of product
A, 20,000 units of product B, and 10,000 units of product C from the same manufacturing process
at a cost of $340,000. A and B are joint products, and C is regarded as a by-product. The unit selling
prices of the products are $30 for A, $25 for B, and $1 for C. None of the products requires separable
processing. Of the units produced, Webster Company sells 18,000 units of A, 19,000 units of B, and
10,000 units of C. The firm uses the net realizable value method to allocate joint costs and by-product
costs. Assume no beginning inventory.
Required
1. What is the value of the ending inventory of product A?
2. What is the value of the ending inventory of product B?
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