Figure 6-4 Deli Products Produces Two Products, X and Y, in a in a Single

Multiple Choice

Figure 6-4
Deli 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.
-Refer to Figure 6-4. What amount of joint costs will be allocated to product X using the estimated net realizable value method?

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