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The Steven Company produces four products product A, product B, product C and product D. These four products are produced from a single raw

The Steven Company produces four products – product A, product B, product C and product D. These four products are produced from a single raw material using a joint production process. All the products have a market value at split-off point and can be sold to customers without any further processing. The total joint cost incurred in the most recent production run is $486,000. The quantities produced of four products and their market or sales values per unit at split-off point are given below:

Required: Allocate joint cost among four joint products using market value method.

Market value Quantities Products at split-off point Produced Product A 40,000 units $0.50 Product B 30,000 units $6.00 Product C 20,000 units $7.00 Product D 40,000 units $10.00

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