Deli Products Produces Two Products,X and Y,in a Single Process

question 126

Multiple Choice

Deli Products produces two products,X and Y,in a single process.In the current year,the joint costs of this process were $25,000.In addition,4,000 units of X and 6,000 units of Y were produced.Separable processing costs beyond the split-off point were: X-$10,000; Y-$20,000.X sells for $10.00 per unit; Y sells for $7.50 per unit.
- What amount of joint costs will be allocated to product X using the net realizable value method?

• A)$11,765
• B)$13,636
• C)$39,000
• D)$40,000