Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Alphabet Soup Inc jointly produces A , B , and C at a joint cost of $ 1 0 0 , 0 0 0 .

Alphabet Soup Inc jointly produces A, B, and C at a joint cost of $100,000. The company uses the production method for byproducts and has estimated that B is a byproduct of manufacturing A and C with an estimated NRV of $6,000. The estimated NRVs of A and C are $80,000 and $80,000, respectively. If Alphabet Soup uses the NRV method in allocating joint costs, what will the cost allocation be?
Select one:
a. $49,000 to A,$2,000 to B, and $49,000 to C.
cross out
b. $48,000 to A,$2,000 to B, and $48,000 to C.
cross out
c. $47,000 to A,$0 to B, and $47,000 to C.
cross out
d. $50,000 to A,$0 to B, and $50,000 to C.
cross out
image text in transcribed

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Fraud Smart

Authors: K. H. Spencer Pickett

1st Edition

0470682582, 978-0470682586

More Books

Students also viewed these Accounting questions