How apportionment of joint costs upto the point of separation amongst the joint products using market value at the point of separation and net…

Apportionment of Joint Cost amongst Joint Products using: Market value at the point of separation: This method is used for apportionment of joint costs to joint products upto the split off point. It is difficult to apply if the market value of the product at the point of separation is not available. It is useful method where further processing costs are incurred disproportionately. Net realizable value Method: From the sales value of joint products (at finished stage) the followings are deducted: Estimated profit marginsSelling & distribution expenses, if anyPost split off costs. The resultant figure so obtained is known as net realizable value of joint products. Joint costs are apportioned in the ratio of net realizable value.