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A Midwest manufacturing company, FarFetched Designs, produces two products from a joint process: Alpha and Omega. Joint processing costs for this month's production cycle
A Midwest manufacturing company, FarFetched Designs, produces two products from a joint process: Alpha and Omega. Joint processing costs for this month's production cycle are $9,000. Sales price Disposal cost per per pound at pound at Further processing Final sale price per Pounds split-off split-off per pound pound Alpha Omega 1,800 $7.00 $4.50 $1.50 $ 8.00 2,600 10.00 6.00 3.50 12.25 If Alpha and Omega are processed further, no disposal costs will be incurred or such costs will be borne by the buyer. Using sales value at split-off, what amount of joint processing cost is allocated to Alpha (round to the nearest dollar)? $2,938 $3,682 $4,500 O $6,062
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