Joint products A and B emerge from common processing that costs $150,000 and yields 8,000 units of Product A and 4,000 units of Product B.Product A can be sold for $100 per unit.Product B can be sold for $80 per unit.What amount of the joint costs will be assigned to Product B if joint costs are allocated on the basis of number of units produced? (Do not round intermediate calculations.)
A) $42,857
B) $66,667
C) $50,000
D) $100,000

Question

Quizplus · Accepted Answer

The total number of units produced is 8,000 (Product A) + 4,000 (Product B) = 12,000 units. If joint costs are allocated based on the number of units produced, Product B, which accounts for 4,000 out of 12,000 units, would be allocated 4,000/12,000 = 1/3 of the total joint costs. Therefore, Product B would be allocated 1/3 of $150,000 = $50,000.

Joint Products a and B Emerge from Common Processing That