A. This is the total amount of joint costs that need to be allocated.

B. Because both products can be sold at the splitoff point, we must use the relative sales values at the splitoff point in order to allocate the joint costs, even though one product will be processed further. Using the relative sales value method, we will allocate the $10,000 of joint costs to the different products. Since product X has a sales value at splitoff of $12,000 and Y has a sales value at splitoff of $8,000, the total sales value is $20,000. 60% of this is from product X, so product X will receive 60%, or $6,000, of the joint costs.

C. This answer results from using the sales value after further processing, net of further processing costs, for Product X to allocate the joint cost. However, since Product X can be sold at the splitoff point, its sales value at the splitoff point should be used to allocate the joint cost. Net realizable value of one product and the sales value at splitoff for the other product can be used if the first product has no sales value at splitoff because it cannot be sold at splitoff. But whenever a product can be sold at the splitoff point, that sales value at the splitoff point should be used for allocating the joint cost, even if the product will be processed further.

D. This is how much would be allocated if the joint costs were allocated equally.