Answer:
M1 allocated joint cost is $196,521.63
Explanation:
In calculating the joint cost allocated to product M1, the formula below comes handy:
M1 allocated joint cost=M1 net realizable value/total realizable value*total joint costs
Note that net realizable value id the selling price less further to make the sales,since there is no further costs to be incurred in making the sale, the selling price ultimately is the net realizable value.
M1 net realizable value is $402,000
total realizable value is $763,000
total joint cost is $373,000
M1 allocated joint cost=$402,000/$763,000*$373,000
M1 allocated joint cost= $196,521.63
