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In: AccountingNet Realizable ValueMethod, Decision to Sell at Split-off or Process FurtherPacheco, Inc.,produces two...Net Realizable ValueMethod, Decision to Sell at Split-off or Process FurtherPacheco, Inc.,produces two products, overs and unders, in a single process. Thejoint costs of this process were $60,000, and 14,000 units of oversand 36,000 units of unders were produced. Separable processingcosts beyond the split-off point were as follows: overs, $18,000;unders, $23,040. Overs sell for $2.00 per unit; unders sell for$3.14 per unit.Required:1.Allocate the $60,000 joint costs using the estimated net realizablevalue method.Allocated Joint CostOvers$Unders$2.Suppose that overs could be sold at the split-off point for $1.80per unit. Should Pacheco sell overs at split-off or process themfurther?Overs be processed further as there will be $ profit if sold atsplit-off.