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Ford Motor Company produces three models, Mustang, Focus, and F-150, from a common input. The joint costs incurred in the production process amount to $1,000,000.
- Ford Motor Company produces three models, Mustang, Focus, and F-150, from a common input. The joint costs incurred in the production process amount to $1,000,000. The models are sold at the following prices:
- Mustang: $600,000
- Focus: $200,000
- F-150: $200,000
Allocate the joint costs to each model using the sales value at split-off method.
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Financial and Managerial Accounting Information for Decisions
Authors: John Wild, Ken Shaw, Barbara Chiappetta
5th edition
978-1259317552, 1259317552, 978-0078025600, 78025605, 978-1259335013, 1259335011, 978-1259347641
