Exercise 7-16

Tarjee Products produces two joint products (A and B). Prior to the split-off point, the company incurs costs of $5,900. Product A weighs 32 pounds, and Product B weighs 124 pounds. Product A sells for $94 per pound, and Product B sells for $37 per pound.

Based on relative sales values at the split-off point, allocate joint costs to Products A and B. (Round relative sales value proportion to 4 decimal places eg.0.4525 and final answers to 0 decimal places.)

Joint costs

Product A : $?

Product B : $?