Joint products A and B emerge from common processing that costs $100,000 and yields 2,000 units of

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Question:

Joint products A and B emerge from common processing that costs $100,000 and yields 2,000 units of Product A and 1,000 units of Product B. Product A can be sold for $100 per unit. Product B can be sold for $120 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?

A. $52,500

B. $60,000

C. $57,500

D. $62,500