Davis Company Davis Company produces three products: A, B, and C from the same process. Joint costs for this production run are $2,100.
If the products are processed further, Davis Company will incur the following disposal costs upon sale: A, $3.00; B, $2.00; and C, $1.00.
Refer to Davis Company. Using sales value at split-off, what amount of joint processing cost is allocated to Product B (round to the nearest dollar)?
A) $700
B) $416
C) $725
D) $959

Question

Davis Company Davis Company produces three products: A, B, and C from the same process. Joint costs for this production run are $2,100.
 If the products are processed further, Davis Company will incur the following disposal costs upon sale: A, $3.00; B, $2.00; and C, $1.00.
Refer to Davis Company. Using sales value at split-off, what amount of joint processing cost is allocated to Product B (round to the nearest dollar)?
A) $700 
B) $416 
C) $725 
D) $959

Quizplus · Accepted Answer

The Answer of Davis Company Davis Company produces three products: A, B, and C from the same process. Joint costs for this production run are $2,100.
 If the products are processed further, Davis Company will incur the following disposal costs upon sale: A, $3.00; B, $2.00; and C, $1.00.
Refer to Davis Company. Using sales value at split-off, what amount of joint processing cost is allocated to Product B (round to the nearest dollar)?
A) $700 
B) $416 
C) $725 
D) $959

Davis Company Davis Company Produces Three Products: A, B, and C