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Bonanza Co. manufactures products X and Y from a joint process that also yields a by-product, Z. Revenue from sales of Z is treated as

Bonanza Co. manufactures products X and Y from a joint process that also yields a by-product, Z. Revenue from sales of Z is treated as a reduction of joint costs. Additional information is as follows:

PRODUCTSXYZTOTALUnits produced30,00030,00015,00075,000Joint costs???$312,000Sales value at split-off$450,000$225,000$15,000$690,000

Joint costs were allocated using the net realizable value method at the split-off point. The joint costs allocated to product X were

Multiple Choice

  • $225,000.
  • $130,800.
  • $112,500.
  • $198,000.

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