Brite Surface Company Brite Surface Company produces four floor cleaners from the same process: C,D,E,and G Joint product costs are $9,000.(Round all answers to the nearest dollar.) If Brite Surface sells the products after further processing,the following disposal costs will be incurred: C,$2.50; D,$1.00; E,$3.50; G,$6.00.
Refer to Brite Surface Company.Using net realizable value at split-off,what amount of joint processing cost is allocated to Product E?

Question

Brite Surface Company Brite Surface Company produces four floor cleaners from the same process: C,D,E,and G Joint product costs are $9,000.(Round all answers to the nearest dollar.)  If Brite Surface sells the products after further processing,the following disposal costs will be incurred: C,$2.50; D,$1.00; E,$3.50; G,$6.00.
Refer to Brite Surface Company.Using net realizable value at split-off,what amount of joint processing cost is allocated to Product E?

Quizplus · Accepted Answer

To calculate the joint processing cost allocated to Product E using net realizable value at split-off, we need to subtract the disposal cost of Product E from its selling price at split-off and then divide the result by the total selling price of all products at split-off.

Selling price at split-off:
C = $10
D = $15
E = $25
G = $20
Total = $70

Net realizable value at split-off for Product E:
$25 - $3.50 = $21.50

Joint processing cost allocated to Product E:
($21.50 / $70) x $9,000 = $2,170

Therefore, the correct answer is (C) $2,170.

Brite Surface Company Brite Surface Company Produces Four Floor Cleaners