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Topic
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A comp. produces fillet, smoked salmon, and salmon remnants in a single process. The same amount of disposal cost is incurred whether a product is sold at split-off or after further processing. In October 20XX, the joint cost of the production process was $142,000.
Product: LBS. Produced: Separate cost: Selling price:
Fillet: 18,000 , $3 , $16.00
Smoked: 20,000 , $5.20 , $13.00
Remnants: 2,000 , $.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 realizable value method to account for the by-product.
Joint cost to be allocated $
Total NRV $
Cost allocation:
Fillet $
Smoked $
Total cost allocation
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