Hurley Processors processes clay into two joint products, molding foam and craft blocks.When processed, each pound of clay yields 20 units of foam and 80 units of blocks.Foam sells for $2 per unit and blocks sells for $1.50 per unit.The total cost to process a 100-pound batch of clay is $35.If the relative sales value method is used to allocate the joint costs, what is the total amount that will be allocated to each batch?
A)$55
B)$35
C)$160
D)None of these answer choices are correct.

Question

Quizplus · Accepted Answer

The total cost to process a 100-pound batch of clay is $35, which is the amount allocated to each batch using the relative sales value method.

Hurley Processors Processes Clay into Two Joint Products, Molding Foam