Question

Joint products A and B emerge from common processing that costs $108,000 and yields 3,200 units of Product A and 2,000 units of Product B. Product A can be sold for $200 per unit. Product B can be sold for $160 per unit. How much of the joint cost will be assigned to Product A if joint costs are allocated on the basis of relative sales values? (Do not round your intermediate calculations.)

Answer 1

Instructions are listed below.

Step-by-step explanation:

Giving the following information:

Joint products A and B emerge from common processing that costs $108,000 and yields 3,200 units of Product A and 2,000 units of Product B. Product A can be sold for $200 per unit. Product B can be sold for $160 per unit.

Total sale= 1,040,000

Product A= 640,000/1,040,000= 0.61

Product B= 0.39

Cost allocated

Product A= 0.61*108,000= 65,880

Product B= 0.39*108,000= 42,120