Question
LMN Inc. produces 2 products. During the period, 600 units were produced at a joint cost of $10,000, the number of units of each product
LMN Inc. produces 2 products. During the period, 600 units were produced at a joint cost of $10,000, the number of units of each product is given in the following table:
Sales Value
Product Units at Split-Off
Product 1 200 $4,000
Product 2 400 5,000
If the firm allocates joint costs using the sales value at split-off point method, how much will be allocated to Product 2?
| a. | $6,666 | |
| b. | $5,555.555 | |
| c. | $4,545 | |
| d. | $5,333 |
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Performance Auditing Measuring Inputs, Outputs, And Outcomes
Authors: Stephen L. Morgan, Ronell B. Raaum, Colleen G. Waring
3rd Edition
0894139762, 9780894139765
