Tango Company produces joint products M, N, and T from a joint process. This information concerns a batch produced in April at ajoint cost of $190,000:ProductMNTUnits Produced andSold17,00011,00012,000ProductMNTAllocatedJoint CostAfter Split-OffTotal SeparableCosts$ 18,80016,4003,800Total Final Sales.ValueRequired:How much of the joint cost should be allocated to each joint product using the net realizable value method? (Do not roundintermediate calculations. Enter your final answers in whole dollars.)$ 230,000210,00039,000

Joint cost is the cost that is incurred in the manufacturing of two or more joint products. The…

Tango Company produces joint products M, N, and T from a joint process. This information concerns a batch produced in April at a joint cost of $190,000: Product M N T Units Produced and Sold 17,000 11,000 12,000 Product M N T Allocated Joint Cost After Split-Off Total Separable Costs $ 18,800 16,400 3,800 Required: How much of the joint cost should be allocated to each joint product using the net realizable value method? (Do not round intermediate calculations. Enter your final answers in whole dollars.) Total Final Sales. Value $ 230,000 210,000 39,000

Tango Company produces joint products M, N, and T from a joint process. This information concerns a batch produced in April at a joint cost of $190,000: Product M N T Units Produced and Sold 17,000 11,000 12,000 Product M N T Allocated Joint Cost After Split-Off Total Separable Costs $ 18,800 16,400 3,800 Required: How much of the joint cost should be allocated to each joint product using the net realizable value method? (Do not round intermediate calculations. Enter your final answers in whole dollars.) Total Final Sales. Value $ 230,000 210,000 39,000

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

Tango Company produces joint products M, N, and T from a joint process. This information concerns a batch produced in April at a
joint cost of $190,000:
Product
M
N
T
Units Produced and
Sold
17,000
11,000
12,000
Product
M
N
T
Allocated
Joint Cost
After Split-Off
Total Separable
Costs
$ 18,800
16,400
3,800
Total Final Sales.
Value
Required:
How much of the joint cost should be allocated to each joint product using the net realizable value method? (Do not round
intermediate calculations. Enter your final answers in whole dollars.)
$ 230,000
210,000
39,000

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Step 1: Introduce to joint cost, split off point and net realizable value

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Step 2: Working for net realizable value

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Step 3: Working for proportion of NRV

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Step 4: Working for allocation of joint cost

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