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NpnqrzpvOvyyl
timer Asked: Oct 28th, 2021

Question Description

Relative Sales Value Method - Joint CostsProduct

M and S are joint products. The joint production cost of the products

is $1500. That is, there are costs up to a certain point and we cannot

divide the products before that point.
M has a market value of $2000

at the split-off point. If M is further processed at an additional cost

of $900, its market value is $3000.
Product S has a market value of

$3000 at the split-off point. If Product S is further processed at an

additional cost of $1000, its market value is $4500.
Using the

relative sales value method (Using the sales price at slit off),

calculate the joint product cost that would be allocated to M and S.



Thank you,



Mike

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