184. CSO: 1C1f LOS: 1C1l
Tempo Company produces three products from a joint process. The three products are
sold after further processing as there is no market for any of the products at the split-off
point. Joint costs per batch are $315,000. Other product information is shown below.
Product A Product B Product C
Units produced per batch 20,000 30,000 50,000
Further processing and
marketing cost per unit $ .70 $3.00 $1.72
Final sales value per unit 5.00 6.00 7.00
If Tempo uses the net realizable value method of allocating joint costs, how much of the
joint costs will be allocated to each unit of Product C?
a. $2.10.
b. $2.65.
c. $3.15.
d. $3.78.
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