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Question - "The following information relates to a joint production process for three products, with a total joint production cost of $190,000.
There are no separable processing costs for any of the three products.
Product
Sales Value at Split-Off
Units at Split-Off
1
$228,000
740
2
95,000
1,295
3
57,000
1,665
$380,000
3,700
Assume that the total sales value at the split-off point for product 1 is $95,000 instead of $228,000 and the sales value of product 3 is $3,800 instead of $57,000.
Assume also that the firm treats product 3 as a joint product and uses the net realizable value method for accounting for joint costs.
There are no separable processing costs for product 3. What amount of joint costs would be allocated to the three products using the relative sales value method?
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