Soy Products Produces Two Products, Soyburgers and Soy Steaks, in a Single

Essay

Soy Products produces two products, Soyburgers and Soy steaks, in a single process. In 2016, the joint costs of this process were $36,000. In addition, 20,000 pounds of soyburgers and 10,000 pounds of soy steaks were produced. Separable processing costs beyond the split-off point were: soyburgers, $7,500; soy steaks, $4,500. Soyburgers sells for $2 per pound; Soy steaks sells for $4 per pound.
Required:
a. Allocate the joint costs using the net realizable value method.
b. Allocate the joint costs using the physical units method.