In the net-realizable-value method, the joint cost is allocated to the joint products in proportion to the joint products' net realizable values.

Question

Quizplus · Accepted Answer

The net realizable value method allocates joint costs to joint products based on their net realizable values, which is the estimated selling price in the ordinary course of business minus any costs of completion, disposal, and transportation.

In the Net-Realizable-Value Method, the Joint Cost Is Allocated to the Joint