Reference no: EM133036238
Question - Marin Products produces three products - DBB-1, DBB-2, and DBB-3 from a joint process. Each product may be sold at the split-off point or processed further. Additional processing requires no special facilities, and production costs of further processing are entirely variable and traceable to the products involved. Key information about Marin's production, sales, and costs follows.
DBB-1 DBB-2 DBB-3 Total
Units Sold 16,000 24,000 36,000 76,000
Price (after addt'l processing) $65 $50 $75
Separable Processing cost $110,000 $44,000 $66,000 $220,000
Units Produced 16,000 24,000 36,000 76,000
Total Joint Cost $3,600,000
Sales Price at Split-off $25 $35 $55
Required - What the amount of joint costs allocated to product DBB-3 using the net realizable value method?
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