What is the value to be given to product Del

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Reference no: EM132780453

Problem - Silay Company is conducting a joint production at a total costs of 1,000,000. The joint production results to the following inventories:

 

Alt

Tab

Del

Units produced

20,000 units

10,000 units

5,000 units

Selling price at: split off

350

400

10

Alt and Tab are considered main products while Del is considered try-product. The entity considers its lay-product as material. The lay-product requires additional processing cost per unit of 1-6 and its cost of disposal is 0.40 per unit.

Required - What is the value to be given to product Del?

Reference no: EM132780453

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