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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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