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XYZ Corporation manufactures two products out of a joint processA and B. The joint costs incurred are $400,000 for a standard production run that generates
XYZ Corporation manufactures two products out of a joint processA and B. The joint costs incurred are $400,000 for a standard production run that generates 70,000 pounds of A and 30,000 pounds of B. A can sell for $9.00 per pound whereas B sells for $7.00 per pound. If additional processing costs beyond the splitoff point are $1.00 per pound for A and $2.333 per pound for B, the amount of joint cost of each production run allocated to B on an estimated net realizable value basis is:
A) $80,005
B) $147,350
C) $320,000
D) $175,000
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