Barrett Chemicals manufactures four chemicals, Chem-1, Chem-2, Chem-3, and Chem-4, from a joint process. The...
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Barrett Chemicals manufactures four chemicals, Chem-1, Chem-2, Chem-3, and Chem-4, from a joint process. The total joint costs in May were $564,000. Additional information follows:
Product
Units Produced
Sales Value at Split-Off
If Processed Further
Additional Costs
Sales Values
Chem-1
299,000
$ 231,000
$ 33,800
$ 271,000
Chem-2
187,000
275,000
30,500
301,000
Chem-3
203,000
160,600
26,000
191,000
Chem-4
155,000
257,400
27,400
281,000
844,000
$ 924,000
$ 117,700
$ 1,044,000
Required:
Barrett Chemicals uses the net realizable value method to allocate joint costs. What joint costs would be allocated to each product in May?
\begin{tabular}{|c|l|l|} \hline Product & NRVatSplit-Off & JointCostsAllocated \\ \hline Chem-1 & & \\ \hline Chem-2 & & \\ \hline Chem-3 & & \\ \hline Chem-4 & & \\ \hline \end{tabular} \begin{tabular}{|c|l|l|} \hline Product & NRVatSplit-Off & JointCostsAllocated \\ \hline Chem-1 & & \\ \hline Chem-2 & & \\ \hline Chem-3 & & \\ \hline Chem-4 & & \\ \hline \end{tabular}
