Y Company produces two joint products: Sweet and Sour.  Joint cost is allocated using the net realizable value method at split-off point.  Joint production cost is $70,000.  Neither product is salable at split-off point.  During May, the additional costs incurred beyond split-off point are as follows:                           Sweet                           $ 32,000                         Sour                             $ 48,000   Production:       Sweet: 3,200 units                                Sour: 1,600 units   Selling prices:    Sweet: $50.00 per unit                          Sour:  $ 90.00 per unit   What is the amount of joint cost allocated to Sweet and Sour using the NRV Method at split-off point. (Must show calculations or no credit)                                                               Joint cost allocated to Sweet:  $_____________________________                                                             Joint cost allocated to Sour: $_______________________________

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Y Company produces two joint products: Sweet and Sour.  Joint cost is allocated using the net realizable value method at split-off point.  Joint production cost is $70,000.  Neither product is salable at split-off point.  During May, the additional costs incurred beyond split-off point are as follows:

 

                        Sweet                           $ 32,000

                        Sour                             $ 48,000

 

Production:       Sweet: 3,200 units                                Sour: 1,600 units

 

Selling prices:    Sweet: $50.00 per unit                          Sour:  $ 90.00 per unit

 

What is the amount of joint cost allocated to Sweet and Sour using the NRV Method at split-off point. (Must show calculations or no credit)

 

                                                            Joint cost allocated to Sweet:  $_____________________________

                                                            Joint cost allocated to Sour: $_______________________________

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