Double Company produces three products DBB-1, DBB-2, and DBB-3 from a joint process. Each...
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Accounting
Double Company produces three products DBB-1, DBB-2, and DBB-3 from a joint process. Each product may be sold at the split-off point or processed further. Additional processing requires no special facilities, and production costs of further processing are entirely variable and traceable to the products involved. Key information about Double's production, sales, and costs follows.
DBB-1
DBB-2
DBB-3
Total
Units Sold
16,200
24,300
36,300
76,800
Price (after additional processing)
$ 65
$ 50
$ 75
Separable Processing cost
$ 111,375
$ 44,550
$ 66,550
$ 222,475
Units Produced
16,200
24,300
36,300
76,800
Total Joint Cost
$ 3,640,000
Sales Price at Split-off
$ 25
$ 35
$ 55
The amount of joint costs allocated to product DBB-3 using the net realizable value method is:
Multiple Choice
$2,027,602.
$1,006,058.
$893,544.
$941,625.
$718,854.
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