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Question - X Corp produces three supplement food products simultaneously through a refining process costing: Direct materials of 40,000; Direct labor of 40,000 and Overhead of 13,000. The joint products: A and B, have a final selling price of 4 per unit and 10 per unit, respectively. Additional processing cost incurred was 2 per pound for each product. Both products are processed further after split off point. Data are as follows:
A product: 10,000 pounds with caloric value of 4,000 calories per pound
B product: 5,000 pounds with caloric value of 2,000 calories per pound.
By product X: 1,000 pounds with caloric value of 1,000 calories per pound.
Assuming that X Corp inventories By product, what is the joint cost allocated to A using NRV method?
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