Evans Company Processes a Chemical,Exacto 7,through a Pressure Treatment Operation

Essay

Evans Company processes a chemical,Exacto 7,through a pressure treatment operation.The complete process has two outputs,X and Y.The January costs to process Exacto 7 are $50,000 for materials and $100,000 for conversion costs.This processing results in two outputs,X and Y,that sell for a total of $250,000.The sales revenue from X amounts to $200,000 of the total.
Required:
Using the net realizable method,assign costs to X and Y for January.
Total joint costs are $150,000 (based on the $50,000 materials plus $100,000 conversion).These costs are allocated as follows: