finding missing data net realizable value athens inc manufactures argon xon and zeon 691216
Finding Missing Data: Net Realizable Value
Athens, Inc., manufactures argon, xon, and zeon from a joint process. Each gas can be liquefied and sold for a higher price. Data on the process are as follows:
|
Product |
Argon |
Xon |
Zeon |
Total |
|
Units produced |
16,000 |
8,000 |
4,000 |
28,000 |
|
Joint costs |
$ 60,000a |
(b) |
(a) |
$120,000 |
|
Sales value at split off |
(c) |
(d) |
$30,000 |
200,000 |
|
Additional costs to liquefy |
14,000 |
$10,000 |
6,000 |
30,000 |
|
Sales value if liquefied |
140,000 |
60,000 |
40,000 |
240,000 |
Required
Determine the value for each lettered item.