Clandestine Corporation allocates joint costs by using the net-realizable-value method. In the company's Texas plant, products D and E emerge from a joint process that costs $250,000. E is then processed at a cost of $220,000 into products F and
Required:
A. Allocate the $220,000 processing cost between products F and
B. From a profitability perspective, should product E be processed into products F and G? Show your calculations.
C. Assume that the net realizable value associated with E is zero. How would you allocate the joint cost of $250,000?
G.
G. Data pertaining to D, F, and G follow.
Required:

Question

Clandestine Corporation allocates joint costs by using the net-realizable-value method. In the company's Texas plant, products D and E emerge from a joint process that costs $250,000. E is then processed at a cost of $220,000 into products F and
Required: 
A. Allocate the $220,000 processing cost between products F and
B. From a profitability perspective, should product E be processed into products F and G? Show your calculations.
C. Assume that the net realizable value associated with E is zero. How would you allocate the joint cost of $250,000?
G.
G. Data pertaining to D, F, and G follow.
  Required:

Quizplus · Accepted Answer

The Answer of Clandestine Corporation allocates joint costs by using the net-realizable-value method. In the company's Texas plant, products D and E emerge from a joint process that costs $250,000. E is then processed at a cost of $220,000 into products F and
Required: 
A. Allocate the $220,000 processing cost between products F and
B. From a profitability perspective, should product E be processed into products F and G? Show your calculations.
C. Assume that the net realizable value associated with E is zero. How would you allocate the joint cost of $250,000?
G.
G. Data pertaining to D, F, and G follow.
  Required:

Clandestine Corporation Allocates Joint Costs by Using the Net-Realizable-Value Method