Question
A company processes raw material into products F1, F2, and F3. Each ton of raw material produces five units of F1, two units of F2,
A company processes raw material into products F1, F2, and F3.
Each ton of raw material produces five units of F1, two units of F2, and three units of F3.
Joint processing costs to the split-off point are USD 15 per ton.
Further processing results in the following per unit figures:
Additional processing costs per unit:
F1 USD 28
F2 USD 30
F3 USD 25
Selling price per unit:
F1 USD 30
F2. USD 35
F3 USD 35
If joint costs are allocated by the net realizable value of finished product, what proportion of joint costs should be allocated to F1?
a. 33.33 percent
b. 30 percent
c. 20 percent
d. 50 percent
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started