Use the following to answer questions:
Cahill Lumber manufactures mulch and wood bark from a joint processing operation using wood as the raw material. For a recent month, 8,000 pounds of mulch were produced having a sales value after split-off point of $21,000. 4,000 pounds of wood bark were produced having a sales value after split-off of $14,000. Using the net- realizable-value method, the portion of the total joint product costs allocated to mulch was $12,000. (CPA adapteD
-If the physical-measures method of allocation were used, the amount of joint costs allocated to mulch would be:
A) $6,000
B) $6,667
C) $20,000
D) $13,333

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The Answer of Use the following to answer questions:
Cahill Lumber manufactures mulch and wood bark from a joint processing operation using wood as the raw material. For a recent month, 8,000 pounds of mulch were produced having a sales value after split-off point of $21,000. 4,000 pounds of wood bark were produced having a sales value after split-off of $14,000. Using the net- realizable-value method, the portion of the total joint product costs allocated to mulch was $12,000. (CPA adapteD
-If the physical-measures method of allocation were used, the amount of joint costs allocated to mulch would be:
A) $6,000
B) $6,667
C) $20,000
D) $13,333

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