Zwena Products manufactures two two joint products, Alpha and Beta, from a common input in a single process. In the most recent production run, joint costs of $180,000 resulted in 12,000 units of Alpha and 8,000 units of Beta. Alpha sells for $12 per unit while Beta sells for $15 per unit. Using the net realizable value method, what amount of joint cost should be allocated to Product Beta?

Principles of Accounting Volume 2
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ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
Chapter3: Cost-volume-profit Analysis
Section: Chapter Questions
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Zwena Products manufactures two
two joint
products, Alpha and Beta, from a common
input in a single process. In the most recent
production run, joint costs of $180,000 resulted
in 12,000 units of Alpha and 8,000 units of Beta.
Alpha sells for $12 per unit while Beta sells for
$15 per unit. Using the net realizable value
method, what amount of joint cost should be
allocated to Product Beta?
Transcribed Image Text:Zwena Products manufactures two two joint products, Alpha and Beta, from a common input in a single process. In the most recent production run, joint costs of $180,000 resulted in 12,000 units of Alpha and 8,000 units of Beta. Alpha sells for $12 per unit while Beta sells for $15 per unit. Using the net realizable value method, what amount of joint cost should be allocated to Product Beta?
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