Cariboo Manufacturing Company incurred a joint cost of $759,000 in the production of X and Y in
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Cariboo Manufacturing Company incurred a joint cost of $759,000 in the production of X and Y in a joint process. Presently, 2,500 of X and 2,100 of Y are being produced each month. Management plans to decrease X's production by 650 units in order to increase the production of Y by 920 units. Additionally, this change will require minor modifications, which will add $51,520 to the joint cost. This cost is entirely attributable to product Y. What is the amount of the joint costs allocable to X and Y before changes to existing production assuming Cariboo allocates their joint costs according to the proportion of X and Y produced?
| Product X | Product Y | |||||
| A. | $ | 346,500 | $ | 412,500 | ||
| B. | $ | 339,706 | $ | 419,924 | ||
| C. | $ | 348,529 | $ | 410,471 | ||
| D. | $ | 412,500 | $ | 346,500 | ||
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Related Book For 
Cost Accounting A Managerial Emphasis
ISBN: 978-0133392883
6th Canadian edition
Authors: Horngren, Srikant Datar, George Foster, Madhav Rajan, Christ
Posted Date:
