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 $140,000:

				After Split-Off
Product	Units Produced and Sold			Total Separable Costs				Total Final Sales Value
M		12,000			$	13,400			$	180,000
N		6,000				10,400				160,000
T		7,000				5,200				29,000

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.)

Product	Allocated Joint Cost
M
N
T

Answer 1

Product Sales Value Separable Costs Net Realizable Value TMN | $ 180,000 $ $ 13,400 $ $ 166,600 $ T 160,000 $ 10,400 $ 149,600 $ 29,000$ 5,200 $ 23,800 $ Total 369,000 29,000 340,000 Product M: Allocated Joint Cost = $140,000 * ($166,600 / $340,000) Allocated Joint Cost = $68,600 Product N: Allocated Joint Cost = $140,000 * ($149,600 / $340,000) Allocated Joint Cost = $61,600 Product T: Allocated Joint Cost = $140,000 * ($23,800 / $340,000) Allocated Joint Cost = $9,800