For purposes of allocating joint costs to joint products,the estimated net realizable value at split-off is equal to:
A) final sales price reduced by cost to complete after split-off.
B) sales price less a normal profit margin at the point of sale.
C) separable product cost plus a normal profit margin.
D) total sales value less joint costs at point of split-off.

Question

Quizplus · Accepted Answer

The estimated net realizable value at split-off is calculated as the final sales price reduced by the cost to complete after split-off, which reflects the value of the product at the split-off point.

For Purposes of Allocating Joint Costs to Joint Products,the Estimated