Reference no: EM132952478

Magna and Delta. At split-off, Magna can be sold for $5 per pound and Delta can be sold for $7 per pound. It costs $150 to produce a batch of Magna and Delta. Each batch contains 20 pounds of Magna and 10 pounds of Delta.

Problem 1: Allocate the joint cost of producing Magna and Delta using the physical measurement method.

Problem 2: Allocate the joint cost of producing Magna and Delta using the relative sales value method.

Problem 3: The sales manager has advised that a batch of 10 pounds of Delta can be processed further at an additional cost of $17. With this additional processing, the 10 pounds of Delta can be sold for $12 a pound. Allocate the $150 cost to Magna and Delta using the net realizable value method if Delta is processed further.