Serene Dairy has 4 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 4 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 producing the milk base for the 4 product lines is $53,000. None of the products have been sold yet, so there are no separate sales revenues or costs of goods sold to consider.

Serene Dairy Has 4 Product Lines: Sour Cream, Ice Cream