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What is the value of the ending inventory of product A

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Problem - Webster Company produces 35,000 units of product A, 30,000 units of product B, and 19,000 units of product C from the same manufacturing process at a cost of $430,000. A and B are joint products, and C is regarded as a by-product. The unit selling prices of the products are $40 for A, $20 for B, and $1 for C. None of the products requires separable processing. Of the units produced, Webster Company sells 28,000 units of A, 29,000 units of B, and 19,000 units of C. The ?rm uses the net realizable value method to allocate joint costs and by-product costs. Assume no beginning inventory.

Required -

1. What is the value of the ending inventory of product A?

2. What is the value of the ending inventory of product B?

Reference no: EM132749074

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