P 8-6: Joint Products, Inc. Joint Products, Inc., produces two joint products, X and V, using a common input. These are produced in batches. The common input costs $8,000 per batch. To produce the final products (X and V), additional processing costs b

P 8-6: Joint Products, Inc.

Joint Products, Inc., produces two joint products, X and V, using a common input.  These are produced in batches.  The common input costs $8,000 per batch.  To produce the final products (X and V), additional processing costs beyond the split-off point must be incurred.  There are no beginning inventories.  The accompanying data summarize the operations.

Required:

1.)    Compute the full cost of the ending inventory using the net realizable value to allocate joint cost.

2.)    If the selling prices at the split-off point (before further processing) are $35 and $1/per pound of X and V, respectively, what should the firm do regarding further processing? Show calculations.