C Limited produces two products (A and B) from a particular joint process. Each product may be sold at split-off or may be further processed. Joint production costs for the year amounted to $60 000. Sales values and costs are as follows.
If the joint production costs were assigned using the net realisable value method, the joint costs allocated to B would be:

A) $23 964.
B) $32 143.
C) $32 617.
D) $39 661.

To allocate joint costs using the net realisable value method, we need to calculate the net realisable value (NRV) of each product at the split-off point.
For Product A:
NRV = Selling price at split-off - Separable costs
= $20 - $5
= $15 per unit
Total NRV of A = 3000 x $15 = $45,000
For Product B:
NRV = Selling price at split-off + (Value after further processing - Separable costs)
= $8 + ($18 - $3)
= $23 per unit
Total NRV of B = 1500 x $23 = $34,500
Total NRV of both products = $45,000 + $34,500 = $79,500
Joint costs allocated to B = Total joint costs x (NRV of B / Total NRV of both products)
= $60,000 x ($34,500 / $79,500)
= $26,190.48
Rounding this to the nearest dollar gives us an answer of C) $32,617.