Calculate nrv of the by-product and remove it from the joint

Reference no: EM132853784

Question: By -products have a relatively low sales value compared with the main product (or products) so their portion of the common or joint cost gets removed before allocating the remaining joint cost.

Units Separable cost Processed value per unit

Product A	100	$500	$25
Product B	100	$800	$20
By-Product C	100	$100	$2

Calculate NRV of the By-product and remove it from the Joint cost

Allocate the remaining joint cost to Products A and B

Calculate Gross Profit if we sold all of the units A & B that we produced

Reference no: EM132853784

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