Data pertaining to a company\'s joint manufacturing process for the current peri

Question

Data pertaining to a company's joint manufacturing process for the current period follows:

Product A: Quantities produced 200lbs. processing cost after products are separated $1,100, market value at point of separation $8/lb.
Product B: Quantities produced 100lbs. processing cost after products are separated $400, market value at point of separation $16lb.

What cost amount should be allocated to Product A for this period's $660 of joint costs on the basis of market value at the point of separation?

$330.00
$440.00
$220.00
$194.12
$484.00

Explanation / Answer

market value of A: 200*8 = 1600 market value of B: 100*16 = 1600 total market value = 3200 allocation to A: 660*1600/3200 = 330 Answer: $330.00

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