Question

Tango Company produces joint products M, N, and I from a joint process. This information concerns a batch produced in April at a joint cost of $155,000: Product Units Produced and Sold 13,500 7,500 T 8,500 After Split-off Total Separable Costs Total Final Sales Value $ 10,000 $195,000 15,900 175,000 6,100 32,000 Required: How much of the joint cost should be allocated to each joint product using the net realizable value method? (Do not round intermediate calculations. Enter your final answers in whole dollars.) Product Allocated Joint Cost N

Answer 1

Let us calculate NRV first to allocate the joint costs in ratio of NRV
Calculation of NRV
Particulars	M	N	T
Total Final Sales Value	195000	175000	32000
Less: Total Seperable Costs	10000	15900	6100
NRV	185000	159100	25900
Allocation of Joint Costs in the ratio of NRV
Particulars	M	N	T	Total
NRV	185000	159100	25900	370000
Alloaction of Joint Costs	77500	66650	10850	155000
Calculation	155000*(185000/370000)	155000*(159100/370000)	155000*(25900/370000)
No of Units is irrelevant as we have allocated based on Total NRV but not on NRV per unit.
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