Captain Fred’s is a fish hatchery that raises two different types of trout for release into local lakes as part of a restocking program. These small 5 to 10 cm juvenile fi share known as fingerlings. 

REQUIRED:

A. List five joint costs that Captain Fred’s is likely to incur in raising fingerlings.

B. The fingerlings are sold for $100 per 100 fi sh. Which joint cost allocation method would be most appropriate? Explain your choice.

C. Now assume that Captain Fred’s begins to raise catfish in addition to the trout. The hatchery requirements for the two types of fish do not differ. However, catfish are less desirable and mist be grown to a larger size (10 to 20 cm) before they are sold for $50 per 100 fi sh. Which joint cost allocation method would be most appropriate? Explain your choice.