Question :
The subsequent questions are based on Costner Company, which produces products X, Y, and Z from a joint process. Joint-process costs were $80,000. Additional information is given:
If Processed Further
Product Units Produced Sales value at Split off Sales Value Additional Costs
X 12,000 $80,000 $110,000 $18,000
Y 10,000 70,000 90,000 14,000
Z 8,000 50,000 60,000 12,000
Required:
a. Consider that joint-product costs are allocated using the physical-measures units produced method, what were the net costs of product X including $18,000 if processed further?
b. Suppose that joint -product costs are allocated using the net realizable value method, what were the net costs of product Y?