Cariboo Manufacturing Company incurred a joint cost of $945,000 in the production of X and Y in a joint process. Presently, 2,900 of X and 2,500 of Y are being produced each month. Management plans to decrease X's production by 850 units in order to increase the production of Y by 1,160 units. Additionally, this change will require minor modifications, which will add $64,800 to the joint cost. This cost is entirely attributable to product Y. What is the amount of the joint costs allocable to X and Y before changes to existing production, assuming Cariboo allocates their joint costs according to the proportion of Y and X produced
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Home » Business » Cariboo Manufacturing Company incurred a joint cost of $945,000 in the production of X and Y in a joint process. Presently, 2,900 of X and 2,500 of Y are being produced each month.