Professional Documents
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Split-off
Point
Separable
Product A Product A
Costs A
Joint
Costs
Separable
Product B Product B
Costs B
Joint Products, Byproducts
Main Products
Joint Products Byproducts
High Low
Sales Value
Why Allocate Joint Costs?
From the total $145,000, deduct the joint costs and total
separable costs to arrive at a total gross margin for all
products
$145,000 - $100,000 – $7,000 =$38,000