Question: Joint products A and B emerge from common processing that costs $20,000 and yields 2,000 units of Product A and 1,000 units of Product B)
Joint products A and B emerge from common processing that costs $20,000 and yields 2,000 units of Product A and 1,000 units of Product B) Product A can be sold as-is for $100 per unit or processed further and sold later for $175 per unit. Product B can be sold as-is for $120 per unit or processed further and sold later for $200 per unit. The additional per unit processing costs for Product A and B total $50 and $25, respectively. How much joint costs will be assigned to Product A if joint costs are allocated on the basis of relative sales values? a. $13,333 b. $7,500 c. $12,500 d. $10,000
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