Nate Company manufactures Products A and B from a joint process that also yields a by-product, X.
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Nate Company manufactures Products A and B from a joint process that also yields a by-product, X. Nate Company accounts for the revenue from its by-product sales as a deduction from the cost of its main products. Additional information is as follows:
Product | A | B | Total | |
Units produced | 15,000 | 9,000 | 24,000 | |
Joint costs | ? | ? | $180,000 | |
Sales value at split off | $402,000 | $178,000 | $580,000 |
1. Assuming that joint product costs are allocated using the relative sales value at split-off approach, what was the joint cost allocated to Products A and B?
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