what is the total net realizable value of protein drinks used to reduce the joint co 643953

(Process costing; joint cost allocation; by product) Get Ahead pro vides personal training services for, and sells apparel products to, its clients. Get Ahead also generates a limited amount of revenue from the sale of protein drinks. The net realizable value from drink sales is accounted for as a reduction in the joint cost assigned to the Personal Training Services and Apparel Products. Protein drinks sell for $2.50 per bottle. The costs associated with making and packaging the drinks are $1.00 per bottle.

The following information is available for 2010 on apparel products, which are purchased by Get Ahead:

Beginning inventory

$ 35,000

Ending inventory

21,500

Purchases

181,350

Joint cost is to be allocated to Personal Training Services and Apparel Products based on approximated net realizable values. For 2010, total revenues were $753,000 from Personal Training Services and $289,000 from Apparel. The following joint costs were incurred:

Rent

$36,000

Insurance

43,750

Utilities

3,000

Separate costs were as follows:

Personal Training

Apparel

Labor

$231,000

$33,250

Supplies

151,300

700

Equipment depreciation

165,000

1,200

Administration

103,000

3,700

For the year, 2,500 bottles of protein drinks were sold.

a. What is the total net realizable value of protein drinks used to reduce the joint cost assigned to Personal Training and Apparel?

b. What is the joint cost to be allocated to Personal Training and Apparel?

c. What is the approximated pre tax realizable value of each main product or service for 2010?

d. How much joint cost is allocated to each main product or service?

e. Determine the net income produced by each main product or service.