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What is the cost to produce each product

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Question - ABC manufactures regular cola and cherry cola drinks using a joint production process. The monthly cost of producing 9,000 litres of regular cola and 6,000 litres of cherry cola till the split off point is $7,500. The sales value of regular cola at the split off is $0.95 per litres while Cherry cola requires a further processing cost of $900 per 6,000 litres before it can be sold as cherry cola at $1.30 per litre. If ReCola uses the net realizable value method to allocate joint costs, what is the cost to produce each product?

Reference no: EM133158386

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