Grimes Company Processes a Chemical,Techno 9,through a Pressure Treatment Operation

Essay

Grimes Company processes a chemical,Techno 9,through a pressure treatment operation.The complete process has two outputs,Y and Z.The January costs to process Techno 9 are $75,000 for materials and $90,000 for conversion costs.This processing results in two outputs,Y and Z,that sell for a total of $332,000.The sales revenue from Y amounts to $200,000 of the total.
Required:
Using the net realizable method,assign costs to Y and Z for January.
Total joint costs are $165,000 (based on the $75,000 materials plus $90,000 conversion).These costs are allocated as follows: