The costs incurred in producing two products are: Joint materials cost$36,000 Joint processing cost21,000 The process yields
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Question:
The costs incurred in producing two products are:
Joint materials cost$36,000
Joint processing cost21,000
The process yields 2,000 units of A that can be sold at the split-off point for $20 each and 4,000 units of B that can be sold at the split-off point for $9 each.
1.What is Product B's profit if joint costs are allocated on the basis of number of units produced?
2.What is Product B's profit if joint costs are allocated on the basis of relative sales values?
Expert Answer:
To calculate Product Bs profit under the two different allocation methods we first need to allocate the joint costs to each product based on the given ... View the full answer
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