Chapter 16, Problem 16.19MCQ

Dallas Company produces joint products, TomL and JimmyJ, each of which incurs separable production costs after the splitoff point. Information concerning a batch produced at a $200,000 joint cost before splitoff follows:

	Separable	Sales
Product	Costs	Value
TomL	$10,000	$ 80,000
JimmyJ	20,000	50,000
	$30,000	$130,000

What is the joint cost assigned to TomL if costs are assigned using relative net realizable value?

1. 1. $60,000
2. 2. $140,000
3. 3. $48,000
4. 4. $200,000