Heston, Inc If Heston Subtracts the NRV of By-Product Sales from Joint

question 12

Multiple Choice

Heston, Inc. produces 2 main products and a by-product. During the current month it had no beginning inventories. During the current month it incurred $185,000 of joint costs, which are allocated to main products using the physical output method. Additional information follows: $\begin{array}{lrrr}&\text { Units } & \text { Units } & \text { Unit Sales }\\\text { Product }&\text { Produced } &\text { Sold } & \text { Price }\\\hline\text { Able (main) } & 8,000 & 6,000 & \$ 15 \\\text { Baker (main) } & 12,000 & 8,000 & 22 \\\text { Delta (by-product) } & 5,000 & 4,500 & 2\end{array}$ If Heston subtracts the NRV of by-product sales from joint costs at the time of by-product sales, what is the total value of the ending inventory?

• A) $123,200
• B) $52,800
• C) $122,500
• D) $52,500

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