Serene Dairy has four product lines: sour cream, ice cream, yogurt, and butter.The total costs of producing the milk base for the products is $53,000 which has been allocated based on litres of milk base used by each product.Results of July follow: How much are total joint costs of the products?
A)$33,000
B)$13,500
C)$53,000
D)$12,500

Question

Serene Dairy has four product lines: sour cream, ice cream, yogurt, and butter.The total costs of producing the milk base for the products is $53,000 which has been allocated based on litres of milk base used by each product.Results of July follow:  How much are total joint costs of the products?
A)$33,000 
B)$13,500 
C)$53,000 
D)$12,500

Quizplus · Accepted Answer

The total joint costs of the products are the costs of producing the milk base allocated to each product. As given in the question, the total costs of producing the milk base for the products is $53,000. Therefore, option C, $53,000 is the correct answer. None of the other options are correct as they do not represent the correct amount of total joint costs.

Serene Dairy Has Four Product Lines: Sour Cream, Ice Cream