Transcribed Image Text
In: Accountingllocating Joint CostsUsing the Net Realizable Value MethodA company manufacturesthree products, L-Ten, Triol,...llocating Joint CostsUsing the Net Realizable Value MethodA company manufacturesthree products, L-Ten, Triol, and Pioze, from a joint process. Eachproduction run costs $12,300. None of the products can be sold atsplit-off, but must be processed further. Information on one batchof the three products is as follows:Product GallonsFurther ProcessingCost per GallonEventual MarketPrice per GallonL-Ten 3,200$0.70 $2.10 Triol 3,7001.105.40Pioze 2,0001.506.20Required:1.Allocate the joint cost to L-Ten, Triol, and Pioze using the netrealizable value method. Round your allocation percentages to fourdecimal places and round the allocated costs to the nearestdollar.Joint CostGradesAllocationL-Ten$TriolPiozeTotal$2.What if it cost $2.10 to process eachgallon of Triol beyond the split-off point? How would that affectthe allocation of joint cost to the three products? Round yourallocation percentages to four decimal places and round theallocated costs to the nearest dollar.Joint CostGradesAllocationL-Ten$TriolPiozeTotal$