The estimated net realizable value method is used when the market selling prices at the splitoff point are NOT available.

Question

Quizplus · Accepted Answer

The estimated net realizable value method is used to estimate the value of joint products when the market selling prices at the splitoff point are not available. This method involves estimating the costs of further processing, marketing, and distribution, and subtracting them from the estimated selling price of the final product to arrive at the net realizable value.

The Estimated Net Realizable Value Method Is Used When the Market