Wren Pork Company uses the value basis of allocating joint costs in its production of pork 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 Wren Pork allocate to Loin chops?
A) $0.
B) $5,909.
C) $8,600.
D) $10,750.
E) $43,000.

Question

Wren Pork Company uses the value basis of allocating joint costs in its production of pork 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 Wren Pork allocate to Loin chops?
A) $0. 
B) $5,909. 
C) $8,600. 
D) $10,750. 
E) $43,000.

Quizplus · Accepted Answer

11eaadfd_cca6_8e54_95d8_d155a50d7635_TB6948_00 Loin chops: 20% × $43,000 = $8,600

Wren Pork Company Uses the Value Basis of Allocating Joint