The Arvid Corporation manufactures widgets, gizmos, and turnbols from a joint process. May production is 4,000 widgets; 7,000 gizmos; and 8,000 turnbols. Respective per unit selling prices at splitoff are $15, $10, and $5. Joint costs up to the splitoff point are $75,000. If joint costs are allocated based upon the sales value at splitoff, what amount of joint costs will be allocated to the widgets?
A) $30,882
B) $26,471
C) $17,647
D) $28,125
E) $60,000

Question

Quizplus · Accepted Answer

$15 × 4,000 = $60,000
$10 × 7,000 = $70,000
$5 × 8,000 = $40,000
Total =$170,000
$60,000/$170,000 × $75,000 = $26,471

The Arvid Corporation Manufactures Widgets, Gizmos, and Turnbols from a Joint