Question - Weinberg Canning produces fillets, smoked salmon, and salmon remnants in a single process. The same amount of disposal cost is incurred whether a product is sold ar split-off or after further processing. In October 2010, the joint cost of the production process was $142,000.
Products Pounds Produced Separate Cost Final Selling $
Fillet 180,000 $3.00 $16,00
Smoked 20,000 $5.20 $13.00
Remnants 2,000 $0.30 $1.50
a) The remnants are considered a by-product of the process and are sold to cat food processors. Allocate the joint cost based on approximated net realizable value at split-off. Use the net realization value method to account for the by-product.
b) Determine the value of ending Finished Goods Inventory, assuming that 4,000 pounds of salmon fillets, 2400 pounds of smoked salmon, and 350 pounds of salmon remnants were sold (round to the nearest penny).