Integrity Manufacturing Company is in its first month of operation. The costs of the joint process were direct materials, 30,000; direct labor, 12,000; and overhead, 8,380. Products X, Y, and Z are the main products. B is a by-product. The company’s policy is to recognize the net realizable value of any by-product inventory at split-off and reduce total joint cost by that amount. Neither the main products nor the by-product requires any additional processing or disposal costs, although management may consider additional processing.
Weight in lbs MV at SPO point Units produced Units sold
X 4,300 66,000 3,220 2,720
Y 6,700 43,000 8,370 7,070
Z 5,400 11,200 4,320 3,800
B 2,300 2,300 4,600 4,000
Assuming that joint cost allocation is based on relative sales value, the value of the ending inventory of Product X is
A. 4,295
B. 4,037
C. 4,099
D. 4,114