Question :

The subsequent questions are based on Costner Company, which produces products X, Y, and Z from a joint process. Joint-process costs were $80,000. Additional information is given:

If Processed Further

Product                Units Produced Sales   value at Split off    Sales Value    Additional Costs

X                             12,000                         $80,000               $110,000          $18,000

Y                              10,000                         70,000                 90,000               14,000

Z                              8,000                            50,000                 60,000               12,000

Required:

a. Consider that joint-product costs are allocated using the physical-measures units produced method, what were the net costs of product X including $18,000 if processed further?

b. Suppose that joint -product costs are allocated using the net realizable value method, what were the net costs of product Y?