The joint cost to produce products 1A, 2A, 3A and 4A is $4,400. Each of these four products can either be sold at the en

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The Joint Cost To Produce Products 1a 2a 3a And 4a Is 4 400 Each Of These Four Products Can Either Be Sold At The En 1 (63.35 KiB) Viewed 15 times

The joint cost to produce products 1A, 2A, 3A and 4A is $4,400. Each of these four products can either be sold at the end of the joint production process, or can be processed further into 1B, 2B, 3B and 4B respectively.< Production and selling information is as follows:< Product Name< Product 1A Product 2A Product 3A< Product 4A< Batch size (kg) 40 21< 6 34 Sales Value ($ per kg) 100 24 If further processed:< processed from:< Product 1A Product 3A processed into:< Product 1B Product 3B Additional costs per batch ($)< 50 130 ¹ 120 Final batch size (kg)< 15 Final Sales value ($/kg)< 120 200< 100 64 For example, at the end of the joint production process, there are 40 kg of Product 1A produced, and each kg of Product 1A sells for $100/kg. The 40kg batch of Product 1A can either be sold at this point for $4,000 (40kg x $100/kg) or the batch can be further processed into a batch of Product 1B at an additional cost of $50. This will produce a 29kg batch of Product 1B that sells for $120/kg for a total sales value of $3,480 (29kg x $120/kg).< Required:< ( Part A Assuming that none of the products are byproducts, calculate the how much of the $4,000 joint cost should be allocated to each product using the four methods discussed in class.< Part B Allocate the $4,400 joint cost assuming using the Net Realizable Value method and assuming that product 3 and product 4 are both byproducts. < स (hint: always determine if it makes economic sense to process further)< لے ܢܢ ܒ 29 ܒ 50 Product 2A Product 2B 64 0.5 Product 4A Product 4B 84 ܢ3