Beef Products Produces Two Products,hamburger and Steaks,in a Single Process

Essay

Beef Products produces two products,hamburger and steaks,in a single process.In the current year,the joint costs of this process were $36,000.In addition,20,000 kilograms of hamburger and 10,000 kilograms of steaks were produced.Separable processing costs beyond the split-off point were: hamburger,$7,500; steaks,$4,500.Hamburger sells for $2 per kilogram; steaks sell for $4 per kilogram.
a.Allocate the joint costs using the net realizable value method.
b.Allocate the joint costs using the physical units method.