Fantasy Manufacturing produces three products in a joint
operation. Information regarding the products appears below:
Item 1
Item 2
Item 3
Total
Units Produced
20,000
25,000
10,000
55,000
Sales Value at Split-off
$
150,000
$
50,000
$
20,000
$
220,000
Additional costs if Processed further
$
10,000
$
30,000
$
5,000
$
45,000
Sales Value if Processed Further
$
170,000
$
90,000
$
28,000
$
288,000
Joint Costs
$
100,000
Required:
Allocate the joint costs using the net realizable value...