Joint products A and B emerge from common processing that costs $240,000 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 $50 per unit.

Question 5

How much of the joint cost will be assigned to Product B if joint costs are allocated on the basis of relative sales values?

Question 6

What is Product Bs profit if joint costs are allocated on the basis of relative sales values?

Question 7

How much of the joint cost will be assigned to Product B if joint costs are allocated on the basis of the number of units produced?

Question 8

What is Product Bs profit if joint costs are allocated on the basis of the number of units produced?