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Problem - Silay Company is conducting a joint production at a total costs of 1,000,000. The joint production results to the following inventories:
Alt
Tab
Del
Units produced
20,000 units
10,000 units
5,000 units
Selling price at: split off
350
400
10
Alt and Tab are considered main products while Del is considered try-product. The entity considers its lay-product as material. The lay-product requires additional processing cost per unit of 1-6 and its cost of disposal is 0.40 per unit.
Required - What is the value to be given to product Del?
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