allocated will be those shown in Exhibit 117. Net Realizable Value at Split-Off Th e net realizable
allocated will be those shown in Exhibit 117. Net Realizable Value at Split-Off Th e net realizable value at split-off allocation method assigns joint cost based on the net realizable values of the joint products at the split-off point. Net realizable value (NRV) is equal to sales revenue at split-off minus preparation and disposal costs for the product. Th is method requires that all joint products be salable at split-off and considers the costs that must be incurred at split-off to
View complete question » allocated will be those shown in Exhibit 117. Net Realizable Value at Split-Off Th e net realizable value at split-off allocation method assigns joint cost based on the net realizable values of the joint products at the split-off point. Net realizable value (NRV) is equal to sales revenue at split-off minus preparation and disposal costs for the product. Th is method requires that all joint products be salable at split-off and considers the costs that must be incurred at split-off to realize the estimated sales revenue. Th e marketing costs (shown in the fourth column of Exhibit 115) for Harkins Poultrys products are incurred whether the product is sold at split-off or after further processing. Exhibit 118 (p. 486)
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