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.)

Question

Destiney

Business

7 February, 07:44

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.)

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Answers (1)

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Adonis Roach · Answer 1

Instructions are listed below.

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