Blender Corporation produces two products, cheese, and butter, in a single process. In the month of January, the joint costs related to the process amounted to $96,000. In addition, 5,000 pounds of cheese and 4,000 pounds of butter were produced. The sales value at the point of separation was $13 for cheese and $14 for butter. Separable processing costs beyond the split-off point were: cheese, $18,000; butter, $18,000. Cheese sells for $17 per pound; butter sells for $18 per pound. Instructions:
a.If Blender uses the sales-value at split-off method, how much in joint costs will be allocated to each product?
b.If Blender uses the NRV method, how much in joint costs will be allocated to each product?
c.Which method will be a better allocation for Blender Corporation if the sales value at split-off is reliable?

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The Answer of Blender Corporation produces two products, cheese, and butter, in a single process. In the month of January, the joint costs related to the process amounted to $96,000. In addition, 5,000 pounds of cheese and 4,000 pounds of butter were produced. The sales value at the point of separation was $13 for cheese and $14 for butter. Separable processing costs beyond the split-off point were: cheese, $18,000; butter, $18,000. Cheese sells for $17 per pound; butter sells for $18 per pound. Instructions:
a.If Blender uses the sales-value at split-off method, how much in joint costs will be allocated to each product?
b.If Blender uses the NRV method, how much in joint costs will be allocated to each product?
c.Which method will be a better allocation for Blender Corporation if the sales value at split-off is reliable?

Blender Corporation Produces Two Products, Cheese, and Butter, in a Single