Dupree Company produces three products - DBB-1, DBB-2, and DBB-3 from a joint process. Each product may be sold at the split-off point or processed further. Additional processing requires no special facilities, and production costs of further processing are entirely variable and traceable to the products involved. Key information about Dupree's production, sales, and costs follows.
Units Sold
Price (after additional processing)
Separable Processing cost
Units Produced
Total Joint Cost
Sales Price at Split-off
DBB-1
16,000
$ 65
$ 110,000
16,000
$ 25
DBB-2
24,000
$ 50
$ 44,000
24,000
$ 35
DBB-3
36,000
$ 75
$ 66,000
36,000
$ 55
Total
76,000
$ 220,000
76,000
$ 3,600,000
The amount of joint costs allocated to product DBB-2 using the sales value at split-off method is:
Multiple Choice
$216,870.
$939,130.