Joint costs total $24,000 for a production process that yields two main products,A and A.B.If joint costs are allocated to the products on the basis of their respective $20,000 and $30,000 sales values,2/3 of the joint costs (or $16,000)would be allocated to Product

Question

Quizplus · Accepted Answer

Allocation rate for Product A = $24,000 in joint costs x [$20,000 ÷ ($20,000 + $30,000)] = 40%
Allocation of joint costs to Product A = 40% x $24,000 = $9,600

Joint Costs Total $24,000 for a Production Process That Yields