Data pertaining to a company's joint production for the current period follows: Compute the cost to be allocated to Product L for this period's $660 of joint costs if the value basis is used. (Do not round your intermediate calculations.)
A) $264.
B) $396.
C) $330.
D) $1,364.
E) $796.

Question

Data pertaining to a company's joint production for the current period follows:  Compute the cost to be allocated to Product L for this period's $660 of joint costs if the value basis is used. (Do not round your intermediate calculations.)
A) $264. 
B) $396. 
C) $330. 
D) $1,364. 
E) $796.

Quizplus · Accepted Answer

11eaadfd_cca3_f639_95d8_15e07fd7ca45_TB6948_00 *Product L: $1,600/$4,000 = 40%; Product M: $2,400/$4,000 = 60%
Product L allocation = 40% × $660 = $264; Product M allocation = 60% × $660 = $396

Data Pertaining to a Company's Joint Production for the Current