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in this video weamp;#39;re going to talk about how to allocate joint costs to products by using the constant gross margin net realizable value method I know thatamp;#39;s a mouthful and itamp;#39;s a little complex but hang with me and weamp;#39;ll get through this so letamp;#39;s take an example where we run a dairy farm that produces raw milk at a cost of three hundred thousand dollars and then we have a separating process that runs costs of two hundred thousand dollars and these are our joint costs right here and we need to allocate these joint costs to our products and what are our products well we produce some whole milk and then we produce some cream but we donamp;#39;t know the sales value at the split off point of the cream although the sales value is split off of the whole milk is two hundred and forty thousand but thatamp;#39;s okay because what weamp;#39;re actually going to do is weamp;#39;re going to process these products further right both of these products wea
