Laredo manufactures Nuts and Bolts from a joint process (cost = $80,000). Five thousand pounds of Nuts can be sold at split-off for $20 per pound; ten thousand pounds of Bolts can be sold at split-off for $15 per pound. For product costing purposes Laredo allocates joint costs using the relative sales value method.
The amount of joint cost allocated to Nuts and Bolts, respectively, would be:
A) $32,000 and $40,000.
B) $32,000 and $48,000.
C) $48,000 and $32,000.
D) $40,000 and $32,000.
E) $40,000 and $40,000.

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The Answer of Laredo manufactures Nuts and Bolts from a joint process (cost = $80,000). Five thousand pounds of Nuts can be sold at split-off for $20 per pound; ten thousand pounds of Bolts can be sold at split-off for $15 per pound. For product costing purposes Laredo allocates joint costs using the relative sales value method.
The amount of joint cost allocated to Nuts and Bolts, respectively, would be:
A) $32,000 and $40,000.
B) $32,000 and $48,000.
C) $48,000 and $32,000.
D) $40,000 and $32,000.
E) $40,000 and $40,000.

Laredo Manufactures Nuts and Bolts from a Joint Process (Cost