Allocate the $325,000 joint costs using the NRV method. Required


Question Description:

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Net realizable value method. Convad Company is one of the world’s leading corn refiners. It produces two joint products—corn syrup and corn starch—using a common production process. In July 2012, Convad reported the following production and selling-price information: A B C D 1 Corn Syrup Corn Starch Joint Costs 2 Joint costs (costs of processing corn to split off point) $3 2 5,000 3 Separable cost of processing beyond split off point $375,000 $ 93,750 4 Beginning inventory (cases) 0 0 5 Production and Sales (cases) 12,500 6,250 6 Ending inventory (cases) 0 0 7 Selling price per case 50 $ 25 Allocate the $325,000 joint costs using the NRV method. Required

Answer

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