Acct434 Advanced Cost Management: P16-18 Convad Company is one of the world'

Acct434 Advanced Cost Management

Problem 16-18 Net realizable value method.
Convad Company is one of the world's leading corn refiners. It produces two joint products-corn syrup and corn starch-using a common production process. In July 2009, Convad reported the following production and selling-price information:
Corn Syrup Corn Starch Joint Costs
Joint costs (costs of processing corn to splitoff point) $325,000
Separable cost of proessing beyond splitoff point $375,000 $93,750
Beginning inventory (cases) - -
Production and sales (cases) 12,500 6,250
Ending inventory (cases) - -
Selling price per case $50 $25

Required
Allocate the $325,000 joint costs using the NRV method.
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