Question

Stoney Brook Company produces two products (X and Y) from a joint process. Each product may be sold at the split-off point or processed further. Additional processing requires no special facilities, and production costs of further processing are entirely variable and traceable to the products involved. Joint manufacturing costs for the year were $60,000. Sales values and costs were as follows: If Processed Further Product Units Made Sales Price at Split-Off Sales Value Separable Cost X 9,000 $ 40,000 $ 78,000 $ 10,500 Y 6,000 80,000 90,000 7,500 If the joint production costs are allocated based on the net-realizable-value method, the amount of joint cost assigned to product Y would be:

Answer 1

Apportioned joint cost to Product Y = $33,000

Step-by-step explanation:

The net realizable sales value is the difference between the sales value less the separable cost.

Apportioned joint cost

= applicable net realizable value /Total net realizable value × Joint costs

$

Net-realizable value

Product X = 78,000-10500= 67,500

Product Y = 90,000-7500= 82,500

Total net-releasable value 150,000

Apportioned joint cost:

Product Y=82500/150,000× $60,000= $ 33,000

Product Y = $33,000