Dammam Petrochemical produces two products – Silka and Super A
by a joint production process. Joint costs amount to $180,000 per
batch of output. Each batch totals 15,000 tons: 20% Silka and 80%
Super A. Both products are processed further without gain or loss
in volume. Separable processing costs are Silka, $4.5 per ton
; Super A, $3 per ton. Silka sells for $31.5 per ton. Super A sells
for $21 per ton.
Required
If joint costs are
allocated on the Net Realizable Value basis (NRV), how much of the
joint costs will be allocated to Silka and Super A?
Dammam Petrochemical produces two products – Silka and Super A by a joint production process. Joint costs amount to $180
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