When allocating joint costs, Feinberg calculates the final sales value of the various products manufactured and subtracts appropriate separable costs. The company is using the:
A) gross margin at split-off method.
B) reciprocal-accounting method.
C) relative-sales-value method.
D) physical-units method.
E) net-realizable-value method.

Question

Quizplus · Accepted Answer

The net-realizable-value method involves calculating the final sales value of products and subtracting separable costs to allocate joint costs.

When Allocating Joint Costs, Feinberg Calculates the Final Sales Value