Problem

Joint Products, Inc.Joint Products, Inc., produces two joint products, X and V, using a co...

Joint Products, Inc.

Joint Products, Inc., produces two joint products, X and V, using a common input. These are produced in batches. The common input costs $8,000 per batch. To produce the final products (X and V), additional processing costs beyond the split-off point must be incurred. There are no beginning inventories. The accompanying data summarize the operations.

 

Products

 

X

V

Quantities produced per batch

200 lbs.

400 lbs.

Additional processing costs per batch beyond split-off

SI.800

$3,400

Unit selling prices of completely processed products

$4Q/lb.

$ 10/lb.

Ending inventory

2.000 lbs.

1.000 lbs.

Required:

a. Compute the full cost of the ending inventory using net realizable value to allocate joint cost.


b. If the selling prices at the split-off point (before further processing) are $35 and $1 per pound of X and V, respectively, what should the firm do regarding further processing? Show calculations.

Step-by-Step Solution

Request Professional Solution

Request Solution!

We need at least 10 more requests to produce the solution.

0 / 10 have requested this problem solution

The more requests, the faster the answer.

Request! (Login Required)


All students who have requested the solution will be notified once they are available.
Add your Solution
Textbook Solutions and Answers Search
Solutions For Problems in Chapter 8