Bare Company manufactures four products from a joint process. Joint costs for the year amounted to $140,000. The following data are also available:

-Assuming the relative-sales-value method of allocating joint costs, the amount of joint costs allocated to product B would be
A) $35,840.00.
B) $48,124.80.
C) $30,800.00.
D) $20,160.00.

Question

Bare Company manufactures four products from a joint process. Joint costs for the year amounted to $140,000. The following data are also available:
 
-Assuming the relative-sales-value method of allocating joint costs, the amount of joint costs allocated to product B would be
A) $35,840.00. 
B) $48,124.80. 
C) $30,800.00. 
D) $20,160.00.

Quizplus · Accepted Answer

The relative-sales-value method allocates joint costs based on the relative sales value of each product. In this case, product B has a sales value of $48,124.80, which is 60% of the total sales value of $80,249.60. Therefore, product B would be allocated 60% of the joint costs, which is $35,840.00.

Bare Company Manufactures Four Products from a Joint Process