The Joplin Company Conducts a Simple Chemical Process in Department

Essay

The Joplin Company conducts a simple chemical process in Department #1,which produces three separate items: A,K,and H.A is processed further in Department #2.K is processed further in Department #3.Product H is a by-product,to be accounted for by the cost reduction method.The following information relates to September:
Department #1's costs $420,000.Department #2's costs $150,000.Department #3's costs $60,000.A: 25,000 pounds completed;23,500 pounds sold for $12 per pound.K: 75,000 pounds completed;70,000 pounds sold for $7.50 per pound.H: 10,000 pounds completed;10,000 pounds sold for $1.50 per pound.(There are shipping costs of $0.30 per pound. )
There were no September 1^st inventories.Required:
Prepare a schedule to show the computation for the unit costs per pound for Products A,K,and H assuming Joplin uses the estimated net realizable value method to allocate joint costs to the main products.