Question
Two finished products, [A & B], are sold for $16 a unit and $24 a unit, respectively. Each product can also be sold at the
Two finished products, [A & B], are sold for $16 a unit and $24 a unit, respectively. Each product can also be sold at the split off point. Product A can be sold for $10 and Product B for $8. Joint costs for the two products totalled $8,000 for January for 600 units of A and 500 units of B.
QUESTION: What are the respective joint costs assigned to each unit of products A and B if the sales value at split off method is used?
A) | $6.40 and $14.40 | |
B) | $6.40 and $9.10 | |
C) | $8.00 and $9.10 | |
D) | $5.92 and $8.88 | |
E) | $8.00 and $6.40 |
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Cornerstones Of Cost Management
Authors: Don R. Hansen, Maryanne M. Mowen
3rd Edition
9781305147102, 1285751787, 1305147103, 978-1285751788
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