Question

Joint products A and B are produced in a single operation from Material M. 500 gallons of Material M, costing $550, produced 333 gallons of Product A, selling for $3 per gallon, and 167 gallons of Product B, selling for $7 per gallon.
If the $550 cost of the 500 gallons of Material M were to be allocated to the joint products in proportion to the number of gallons of each product produced, Product A's share would be:
a. $0.
b. $367.
c. $492.
d. $292.


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  • CreatedSeptember 19, 2013
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