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ten tons of sugar beets yields 2 tons of sugar 10 tons x 0 2 and 4 tons of feed 10 t 691225

Ten tons of sugar beets yields 2 tons of sugar (10 tons x 0.2) and 4 tons of feed (10 tons x 0.4)

 

Sugar

Feed

Total

Final sales value

$800

$800

$1,600

Less additional processing costs

–0–

–0–

–0–

Net realizable value at split off point

$800

$800

$1,600

Proportionate share

 

 

 

$800 + 1,600

50%

 

 

$800 + 1,600

 

50%

 

Allocated joint costs

 

 

 

($60 + $40) x 10 tons x 50%

$500

 

 

($60 + $40) x 10 tons x 50%

 

$500

 

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