Burlington Corporation manufactures joint products W and X. During a recent period, joint costs amounted to $300,000 in the production of 20,000 gallons of W and 60,000 gallons of X. Both products will be processed beyond the split-off point, giving rise to the following data: $\begin{array} { | l | c | c | c | }
\hline & \text { W } && \text { X } \
\hline \text { Separable processing costs } & \$ 40,000 && \$ 160.000 \
\hline \text { Sales price (per gallon) if processed beyond split-off } & \$ 14 && \$ 12 \
\hline
\end{array}$ The joint cost allocated to W under the net-realizable-value method would be:

Question

Burlington Corporation manufactures joint products W and X. During a recent period, joint costs amounted to $300,000 in the production of 20,000 gallons of W and 60,000 gallons of X. Both products will be processed beyond the split-off point, giving rise to the following data: $\begin{array} { | l | c | c | c | } 
\hline & \text { W } && \text { X } \
\hline \text { Separable processing costs } & \$ 40,000 && \$ 160.000 \
\hline \text { Sales price (per gallon) if processed beyond split-off } & \$ 14 && \$ 12 \
\hline
\end{array}$ The joint cost allocated to W under the net-realizable-value method would be:

Quizplus · Accepted Answer

The Answer of Burlington Corporation manufactures joint products W and X. During a recent period, joint costs amounted to $300,000 in the production of 20,000 gallons of W and 60,000 gallons of X. Both products will be processed beyond the split-off point, giving rise to the following data: $\begin{array} { | l | c | c | c | } 
\hline & \text { W } && \text { X } \
\hline \text { Separable processing costs } & \$ 40,000 && \$ 160.000 \
\hline \text { Sales price (per gallon) if processed beyond split-off } & \$ 14 && \$ 12 \
\hline
\end{array}$ The joint cost allocated to W under the net-realizable-value method would be:

Burlington Corporation Manufactures Joint Products W and X The Joint Cost Allocated to W Under the Net-Realizable-Value Method