Craven Company produces three joint products, 201, 332, and 421. The following information relates to the current period:
201 332 421 Total
Gallons produced and sold 30,000 40,000 10,000 80,000
Price per gallon after additional processing $20.00 $11.00 $5.00
Total separable processing cost $50,000 $40,000 $0 $90,000
Total joint costs $500,000
Sales price at split-off $10.00 $3.75 $5.00
Total sales value at split-off $300,000 $150,000 $50,000 $500,000
Sales value after additional processing $600,000 $440,000 $50,000 $1,090,000
Calculate the amount of joint product cost allocated to product 332 using the net realizable value (NRV) method.
A. $200,000
B. $175,000
C. $325,000
D. $50,000