A company makes two joint products from recycled plastic: artificial joists for construction and plastic designer chairs.

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A company makes two joint products from recycled plastic: artificial joists for construction and plastic designer chairs. The total joint costs are $140,000, and the process produces 3,000 joists and 2,000 chairs. Joists sell for $20 and chairs for $50. The average cost per unit is determined to be $28, resulting in a gross margin of −$24,000 for joists and $44,000 for chairs. What joint cost allocation methods was used for these calculations?

Posted Date: May 02, 2024 03:25 AM

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A company makes two joint products from recycled plastic: artificial joists for construction and plastic designer chairs.

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Based on the information provided the joint cost allocation method used in this scenario is the Weig... View the full answer

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