Herbster manufactures A, B, and C, all of which are joint products, and D, which is classified as a by-product. If joint manufacturing costs amount to $450,000 and the company is using a popular accounting method, the firm will:
- allocate $450,000 among A, B, and C.
- allocate $450,000 among A, B, C, and D.
increase $450,000 by the net realizable value of D and then allocate the total among A, B, and C.decrease $450,000 by the net realizable value of D and then allocate the total among A, B, and C.