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Weinberg Canning produces fillets, smoked salmon, and salmon remnants in a single process. The same amount of disposal cost is incurred whether a product is sold ar split-off or after further processing.
In October 2010, the joint cost of the production process was $142,000. Products Pounds Produced Separate Cost Final Selling Price Filet 18,000 3 16 Smoked 20,000 5.2 13 Remants 2,000 0.3 1.5 a) The remnants are considered a by-product of the process and are sold to cat food processors. Allocate the joint cost based on approximated net realizable value at split-off.
Use the net realization value method to account for the by-product. b)Determine the value of ending Finished Goods Inventory, assuming that 4,000 pounds of salmon fillets, 2400 pounds of smoked salmon, and 350 pounds of salmon remnants were sold .
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