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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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