Herbster manufactures a b and c all of which are joint

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Herbster manufactures A, B, and C, all of which are joint products, and D, which is classified as a by-product. If joint manufacturing costs amount to $450,000 and the company is using a popular accounting method, the firm will:

  • allocate $450,000 among A, B, and C.
  • allocate $450,000 among A, B, C, and D.

increase $450,000 by the net realizable value of D and then allocate the total among A, B, and C.decrease $450,000 by the net realizable value of D and then allocate the total among A, B, and C.

Reference no: EM13589897

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