Under the Net Realizable Method of Allocating Joint Costs, Which

Multiple Choice

Under the net realizable method of allocating joint costs, which of the following equations is used to compute the value of products not processed beyond the split-off point?

A) Net Realizable Value = Selling Price at Split-Off × Quantity
B) Net Realizable Value = Selling Price at Split-Off ÷ Quantity
C) Net Realizable Value = (Final Selling Price × Quantity) - Additional Processing Costs
D) Net Realizable Value = (Final Selling Price × Quantity) ÷ Additional Processing Costs