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morning all ,, yesterday i sent a question and i have three different answers and I dont know which one are correct, need your help

morning all ,,

yesterday i sent a question and i have three different answers and I dont know which one are correct, need your help please

the question is:

Crucible Company manufactures products A and B from a joint process, which also yields a by-product X. Crucible accounts for the revenues from its by-product sales as other income. Additional information follows:

A

B

X

Total

Units produced

15,000

9,000

6,000

30,000

Joint costs

?

?

?

$117,000

Sales value at split off

$125,000

$100,000

$25,000

$250,000

Assuming that joint product costs are allocated using the net realizable value at split-off approach, what was the joint cost allocated to product B?

the answers are:

1.

A B X Total
Sales Value at split off $125,000 $100,000 $25,000 $250,000
Joint Cost(Allocated as % of Sales Value)

$58,500

($117,000*50%)

$46,800

($117,000*40%)

$11,700

($117,000*10%)

$117,000

Joint Cost allocated to the Product B is $46,800

2.

Answer: $ 52,000

As crucible accounts for its revenue from by product sales as other income, the amount of $ 25,000 should not be deducted from joint costs, in other words, the entire amount of $ 117,000 should be allocated to the two main products.

Therefore, the amount of joint costs to be allocated to product B = $ 100,000 / $ ( 125,000 + 100,000) x $ 117,000 = $ 52,000.

3.

Joint cost to be allocated

Total joint cost = $117000

Less: Other income = $25000

Joint cost to be allocated = $92000

Joint cost allocated to product B

= Total cost to allocated/Total sales value * Sales value of B

= 92000/(125000+100000) *100000

= $40889

thank you

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