# Apportioning Joint Costs — Market Value Methods
Market value methods allocate joint cost based on the relative sales value of each joint product, on the principle that a product's ability to bear cost is proportional to its revenue.
## Method III — Market Value at Point of Separation
Use this when each product can be sold at the split-off point.
| Item | Joint Product 1 | Joint Product 2 |
|---|---|---|
| Sales price at split-off (per unit) | xx | xx |
| Less: Selling expenses | (xx) | (xx) |
| Net Market Price at split-off | xx | xx |
| × Units produced | xx | xx |
| Total value | xxx | xxx |
Allocate total joint cost in the ratio of the final-row totals.
## Method IV — Market Value After Further Processing
Use when products cannot reasonably be sold at split-off and must be processed further before sale.
| Item | Joint Product 1 | Joint Product 2 |
|---|---|---|
| Sales price after further processing | xx | xx |
| × Units after further processing | xx | xx |
| Final value | xxx | xxx |
Allocate joint cost in the ratio of final values.
Note: This method does not deduct further processing costs — that's the NRV method's job.