NESA corporation manufactures two products, A and B, from ajoint process. It costs NESA $500,000 in a joint process to produce3,000 units of A and 2000 units of B. Both products can be sold athte split-off point or they can be processed fruther to copletion.The company will incur separable costs of $40 per units for A and$60 for B to process further. A and B can be sold for $160 and$200, respectively, at completion.
Required
a)What is the amount of separable costs assigned to products Aand B assuming that joint costs are allocated using the netrealizable value method?
b) What is the amount of joint costs assigned to products A andB assuming that joint costs are allocated using the physical unitsmethod?
c) What is the amount of total costs assigned to products A andB assuimng that joint costs are allocated uisng the physical unitsmethod?
d) should product A be sold at the split-off point or processedfurther assuming that it can be sold for $110 at split-off? Justifyanswer with numbers
NESA corporation manufactures two products, A and B, from ajoint process. It costs NESA $500,000 in a joint process to produce3,000 units of A and 2000 units of B. Both products can be sold athte split-off point or they can be processed fruther to copletion.The company will incur separable costs of $40 per units for A and$60 for B to process further. A and B can be sold for $160 and$200, respectively, at completion.
Required
a)What is the amount of separable costs assigned to products Aand B assuming that joint costs are allocated using the netrealizable value method?
b) What is the amount of joint costs assigned to products A andB assuming that joint costs are allocated using the physical unitsmethod?
c) What is the amount of total costs assigned to products A andB assuimng that joint costs are allocated uisng the physical unitsmethod?
d) should product A be sold at the split-off point or processedfurther assuming that it can be sold for $110 at split-off? Justifyanswer with numbers
