Algonquin Products Produces Two Products, X and Y, in a Single

question 35

Multiple Choice

Algonquin Products produces two products, X and Y, in a single process. In 2011, 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 net realizable value method?

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

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