Question

Tango Company produces joint products M, N, and T from a joint process. This information concerns a batch produced in April at a joint cost of $130,000: After Split-Off Product Units Produced and Sold Total Separable Costs Total Final Sales Value M 11,000 $ 10,000 $ 170,000 N 5,000 9,200 150,000 T 6,000 7,800 27,000

Required: How much of the joint cost should be allocated to each joint product using the net realizable value method? (Do not round intermediate calculations. Enter your final answers in whole dollars.)

Answer 1

Answer:
Particulars	Product M	Product N	Product T	Total
Total Final Sales Value	1,70,000	1,50,000	27,000	3,47,000
Less: Total Separable Costs	-10,000	-9,200	-7,800	-27,000
Net realizable value at Split-off point	1,60,000	1,40,800	19,200	3,20,000
Proportion on Total NRV	50% ( 160,000 / 320,000)	44% ( 140,800 / 320,000)	6% ( 19,200 / 320,000)	100%
x   Joint Cost	$ 130,000	$ 130,000	$ 130,000	$ 130,000
Joint cost allocated to each joint product	$ 65,000	$ 57,200	$ 7,800	$ 130,000