Question:
Finding Missing Data: Net Realizable Value
Athens, Inc., manufactures argon, xon, and zeon from a joint process. Each gas can be liquefied and sold for a higher price. Data on the process are as follows:
|
Product
|
Argon
|
Xon
|
Zeon
|
Total
|
|
Units produced
|
16,000
|
8,000
|
4,000
|
28,000
|
|
Joint costs
|
$ 60,000a
|
(b)
|
(a)
|
$120,000
|
|
Sales value at split-off
|
(c)
|
(d)
|
$30,000
|
200,000
|
|
Additional costs to liquefy
|
14,000
|
$10,000
|
6,000
|
30,000
|
|
Sales value if liquefied
|
140,000
|
60,000
|
40,000
|
240,000
|
Required
Determine the value for each lettered item.