Net realizable value method. Convad Company is one of the world’s leading corn refiners. It produces two joint products—corn syrup and corn starch—using a common production process. In July 2012, Convad reported the following production and selling-price information:
A
B
C
D
1
Corn Syrup
Corn Starch
Joint Costs
2
Joint costs (costs of processing corn to split off point)
$3 2 5,000
3
Separable cost of processing beyond split off point
$375,000
$ 93,750
4
Beginning inventory (cases)
0
5
Production and Sales (cases)
12,500
6,250
6
Ending inventory (cases)
7
Selling price per case
50
$ 25
Allocate the $325,000 joint costs using the NRV method. Required
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