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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

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