Suppose that one hog yields 200 pounds of ham, 75 pounds of chops, and 25 pounds of miscellaneous items. The sales value of each of the products is as follows: $\begin{array} { l l }
\underline{\text { Product } }& \underline{\text { Sales Value Per Pound }} \
\text { Ham } & \$ 1.20 \
\text { Chops } & \$ 2.00 \
\text { Miscellaneous items } & \$ 0.40
\end{array}$ The hog costs $550. Processing costs are $40.
Required:
A. Determine the proper allocation of joint costs to the three products by using the physical-units method.
B. Repeat part "B" by using the relative-sales-value method.

Question

Suppose that one hog yields 200 pounds of ham, 75 pounds of chops, and 25 pounds of miscellaneous items. The sales value of each of the products is as follows: $\begin{array} { l l } 
\underline{\text { Product } }& \underline{\text { Sales Value Per Pound }} \
\text { Ham } & \$ 1.20 \
\text { Chops } & \$ 2.00 \
\text { Miscellaneous items } & \$ 0.40
\end{array}$ The hog costs $550. Processing costs are $40.
Required:
A. Determine the proper allocation of joint costs to the three products by using the physical-units method.
B. Repeat part "B" by using the relative-sales-value method.

Quizplus · Accepted Answer

The Answer of Suppose that one hog yields 200 pounds of ham, 75 pounds of chops, and 25 pounds of miscellaneous items. The sales value of each of the products is as follows: $\begin{array} { l l } 
\underline{\text { Product } }& \underline{\text { Sales Value Per Pound }} \
\text { Ham } & \$ 1.20 \
\text { Chops } & \$ 2.00 \
\text { Miscellaneous items } & \$ 0.40
\end{array}$ The hog costs $550. Processing costs are $40.
Required:
A. Determine the proper allocation of joint costs to the three products by using the physical-units method.
B. Repeat part "B" by using the relative-sales-value method.

Suppose That One Hog Yields 200 Pounds of Ham, 75