Breon Beef Company uses the relative market value method of allocating joint costs in its production of beef products. Relevant information for the current period follows: The total joint cost for the current period was $43,000. How much of this cost should Breon Beef allocate to sirloin?
A) $0.
B) $5,909.
C) $8,600.
D) $10,750.
E) $43,000.

Question

Quizplus · Accepted Answer

The relative market value method allocates joint costs based on the proportion of each product's market value relative to the total market value of all products. Without specific market values for sirloin and other products, we cannot calculate the exact allocation. However, the correct answer must be one of the provided numerical options, implying some allocation was made, thus option C ($8,600) is chosen as a placeholder for the correct allocation method.

Breon Beef Company Uses the Relative Market Value Method of Allocating