Net Realizable Value Method, Decision to Sell at Split - off or Process Further Pacheco, Inc., produces two products, overs and unders, in a single process. The joint costs of this process were $60,000, and 15,000 units of overs and 34,000 units of unders were produced. Separable processing costs beyond the split - off point were as follows: overs, $20, 000; unders, $ 16,760. Overs sell for $2.00 per unit; unders sell for $ 3.14 per unit. Required: 1. Allocate the $60,000 joint costs using the estimated net realizable value method. Allocated Joint Cost Overs $ Unders $2. Suppose that overs could be sold at the split - off point for $1.80 per unit. Should Pacheco sell overs at split - off or process them further? Overs should not be processed further as there will be $ more profit if sold at split - of
Net Realizable Value Method, Decision to Sell at Split - off or Process Further Pacheco, Inc., produces two products, overs and unders, in a single process. The joint costs of this process were $60,000, and 15,000 units of overs and 34,000 units of unders were produced. Separable
Suppose that overs could be sold at the split - off point for $1.80 per unit. Should Pacheco sell overs at split - off or process them further? Overs should not be processed further as there will be $ more profit if sold at split - off.
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