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Bennett Company produces two products from a joint process: A and C. Joint processing costs for this production cycle are $9,000. Yards Sales price per
Bennett Company produces two products from a joint process: A and C. Joint processing costs for this production cycle are $9,000.
Yards | Sales price per yard at split-off | Disposal cost per yard at split-off | Further processing per yard | Final sale price per yard | |
---|---|---|---|---|---|
A | 1,800 | $7.00 | $4.50 | $1.50 | $8.00 |
C | 2,600 | 10.00 | 6.00 | 3.50 | 12.25 |
If A and C are processed further, no disposal costs will be incurred or such costs will be borne by the buyer.
Refer to Bennett Company. Using a physical measure, what amount of joint processing cost is allocated to Product C (round to the nearest dollar)?
Select one:
a. $4,500
b. $6,062
c. $5,318
d. $3,682
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