Ellis Company Ellis Company Produces Two Products from a Joint

Multiple Choice

Ellis Company Ellis Company produces two products from a joint process: X and Z. Joint processing costs for this production cycle are $8,000.
If X and Z are processed further, no disposal costs will be incurred or such costs will be borne by the buyer.
Refer to Ellis Company. Using net realizable value at split-off, what amount of joint processing cost is allocated to Product Z (round to the nearest dollar) ?

A) $5,500
B) $4,000
C) $2,390
D) $5,610