Hsu Company manufactures two products (A and B) from a joint process that cost $200,000 for the year just ended. Each product may be sold at the split-off point or processed further. Additional processing requires no special facilities, and production costs of further processing are entirely variable and traceable to the products involved. Further information follows.

If the joint costs are allocated based on the physical-units method, the amount of joint cost assigned to product A would be:
A) $80,000.
B) $100,000.
C) $104,000.
D) $120,000.
E) None of the answers is correct.

Question

Hsu Company manufactures two products (A and B) from a joint process that cost $200,000 for the year just ended. Each product may be sold at the split-off point or processed further. Additional processing requires no special facilities, and production costs of further processing are entirely variable and traceable to the products involved. Further information follows.

If the joint costs are allocated based on the physical-units method, the amount of joint cost assigned to product A would be:

If the joint costs are allocated based on the physical-units method, the amount of joint cost assigned to product A would be:
A) $80,000. 
B) $100,000. 
C) $104,000. 
D) $120,000. 
E) None of the answers is correct.

Quizplus · Accepted Answer

The Answer of Hsu Company manufactures two products (A and B) from a joint process that cost $200,000 for the year just ended. Each product may be sold at the split-off point or processed further. Additional processing requires no special facilities, and production costs of further processing are entirely variable and traceable to the products involved. Further information follows.

If the joint costs are allocated based on the physical-units method, the amount of joint cost assigned to product A would be:
A) $80,000. 
B) $100,000. 
C) $104,000. 
D) $120,000. 
E) None of the answers is correct.

Hsu Company Manufactures Two Products (A and B) from a Joint