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 your intermediate calculations.)
A)$42,857
B)$66,667
C)$50,000
D)$100,000

Question

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 your intermediate calculations.)
A)$42,857
B)$66,667
C)$50,000
D)$100,000

Quizplus · Accepted Answer

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

Joint Products a and B Emerge from Common Processing That