Cheyenne Enterprises manufactures Nuts and Bolts from a joint process (cost = $80,000). Five thousand pounds of Nuts can be sold at split-off for $20 per pound; ten thousand pounds of Bolts can be sold at split-off for $15 per pound. For product costing purposes Cheyenne allocates joint costs using the relative sales value method.

The amount of joint cost allocated to Bolts would be:

Multiple Choice

• $32,000.

• $40,000.

• $48,000.

• $60,000.

• $80,000.

• 
  

Answer rating: 100% (QA)

1 Sales value Nuts 100000 ... View the full answer