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Great Falls Company makes two products, Wool Gloves and Wool Mittens. They are initially processed from the same raw material and then, after split-off,
Great Falls Company makes two products, Wool Gloves and Wool Mittens. They are initially processed from the same raw material and then, after split-off, further processed separately. Additional information is as follows: Mittens $10,950 Final Sales Price Gloves $13,500 Total $24,450 Joint Costs Prior to Split-Off Point ? ? $ 9,270 Costs Beyond Split-Off Point $ 4,500 $ 4,500 $ 9,000 What are the joint costs allocated to Gloves and Mittens assuming Great Falls uses the estimated net realizable value approach? A. Gloves $4,635 Mittens $4,635 B. $4,960 $4,310 C. $5,400 $3,870 D. $5,560 $3,710 Multiple Choice Option A Option B Option C Option D
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