Use the following information for the next 3 questions.
Recyclers, Inc. reprocesses paper and obtains 2 main products, a by-product, and waste. By-product revenues are treated as a reduction in joint costs. During the period, 1,000 tons were processed at a cost of $12,000 for materials and processing, resulting in the following:
-If the firm allocates joint costs to the main products using the net realizable value, how much will be allocated to Main-1?
A) $5,000
B) $5,714
C) $6,857
D) $6,000

Question

Use the following information for the next 3 questions.
Recyclers, Inc. reprocesses paper and obtains 2 main products, a by-product, and waste. By-product revenues are treated as a reduction in joint costs. During the period, 1,000 tons were processed at a cost of $12,000 for materials and processing, resulting in the following: 
-If the firm allocates joint costs to the main products using the net realizable value, how much will be allocated to Main-1?
A) $5,000 
B) $5,714 
C) $6,857 
D) $6,000

Quizplus · Accepted Answer

The net realizable value of Main-1 is $5,714. This is the amount that the firm will allocate to Main-1 using the net realizable value method.

Use the Following Information for the Next 3 Questions