Question:
Net Realizable Value Method with By-Products
Grand Company manufactures products Alpha and Beta from a joint process, which also yields a by-product, Gamma. Grand accounts for the revenues from its by-product sales as other income. Additional information follows:
|
|
Alpha
|
Beta
|
Gamma
|
Total
|
|
Units produced
|
45,000
|
27,000
|
18,000
|
90,000
|
|
Allocated joint costs
|
?
|
?
|
?
|
$280,800
|
|
Sales value at split-off
|
$300,000
|
$240,000
|
$60,000
|
$600,000
|
Required
Assuming that joint product costs are allocated using the net realizable value at split-off approach, what was the joint cost allocated to product Beta?