Johnson Company Ellis Company produces two products from a joint process: A and C Joint processing costs for this production cycle are $9,000. If A and C are processed further,no disposal costs will be incurred or such costs will be borne by the buyer.
Refer to Johnson Company.Using approximated net realizable value at split-off,what amount of joint processing cost is allocated to Product C (round to the nearest dollar)?
A)$4,500
B)$5,986
C)$6,062
D)$6,282

Question

Johnson Company Ellis Company produces two products from a joint process: A and C Joint processing costs for this production cycle are $9,000.  If A and C are processed further,no disposal costs will be incurred or such costs will be borne by the buyer.
Refer to Johnson Company.Using approximated net realizable value at split-off,what amount of joint processing cost is allocated to Product C (round to the nearest dollar)?
A)$4,500 
B)$5,986 
C)$6,062 
D)$6,282

Quizplus · Accepted Answer

The Answer of Johnson Company Ellis Company produces two products from a joint process: A and C Joint processing costs for this production cycle are $9,000.  If A and C are processed further,no disposal costs will be incurred or such costs will be borne by the buyer.
Refer to Johnson Company.Using approximated net realizable value at split-off,what amount of joint processing cost is allocated to Product C (round to the nearest dollar)?
A)$4,500 
B)$5,986 
C)$6,062 
D)$6,282

Johnson Company Ellis Company Produces Two Products from a Joint