Accounting for Joint Production Processes Net Realizable Value Method A company manufactures two products,Alpha and Beta,from a joint process.One production run costs $5,750 and results in 1,000 gallons of Alpha and 3,000 gallons of Beta.Neither product is salable at the split-off point,but must be further processed.The separable cost for Alpha is $1 per gallon and for Beta is $2 per gallon. Further Hypothetical Hypothetical Allocated Market Processing Market Number Market Joint Price Cost Price of Units Value Cost Alpha $5 $1 $4 1,000 $4,000 $2,300 Beta 4 2 2 3,000 6.000 3.450 $10,000 $5,750 海南大学董建华讲授 9-23 海南大学董建华讲授 9- 23 A company manufactures two products, Alpha and Beta, from a joint process. One production run costs $5,750 and results in 1,000 gallons of Alpha and 3,000 gallons of Beta. Neither product is salable at the split-off point, but must be further processed. The separable cost for Alpha is $1 per gallon and for Beta is $2 per gallon. Further Hypothetical Hypothetical Allocated Market Processing Market Number Market Joint Price Cost Price of Units Value Cost Alpha $5 $1 $4 1,000 $ 4,000 $2,300 Beta 4 2 2 3,000 6,000 3,450 $10,000 $5,750 Accounting for Joint Production Processes Net Realizable Value Method