Question: Computing joint costsrelative sales value method LO 5 Karl Company's joint cost of producing 1 ,000 units of Product A, 500 units of Product B,
Computing joint costs—relative sales value method LO5 Karl Company's joint cost of producing 1 ,000 units of Product A, 500 units of Product B, and 500 units of Product C is $200,000. The unit sales values of the three products at the split-off point are Product A—$20, Product B—$200, and Product C—$ 1 60. Ending inventories include 1 00 units of Product A, 200 units of Product B, and 300 units of Product C.
Compute the amount of joint cost that would be included in the ending inventory valuation of the three products on the basis of their relative sales values.
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