Recyclers, Inc. reprocesses paper and obtains 2 main products, a by-product and a waste. By-product revenues are treated as a reduction in joint costs. During the period 1,000 tons were processed at a cost of $12,000 for materials and processing, resulting in the following: $\begin{array}{lrrrr}
&&\text { Sales Value }&\text {Separable }&\text {Sales Value After }\
\text { Product } &\text { Tons } &\text { at Split-Off } &\text { Costs }& \text { Further Processing }\
\text { Main-1 } & 200 & \$ 4,000 & \$ 2,000 & \$ 10,000 \
\text { Main-2 } & 400 & 5,000 & 6,000 & 12,000 \
\text { By-product } & 300 & 2,000 & -0- & 2,000 \
\text { Waste } & 100 & -0- & -0- & -0-
\end{array}$
If the firm allocates joint costs to the main products using the physical output method, how much will be allocated to Main-1?
A) $2,000
B) $2,400
C) $2,222
D) $3,333

Question

Recyclers, Inc. reprocesses paper and obtains 2 main products, a by-product and a waste. By-product revenues are treated as a reduction in joint costs. During the period 1,000 tons were processed at a cost of $12,000 for materials and processing, resulting in the following: $\begin{array}{lrrrr}
&&\text { Sales Value }&\text {Separable }&\text {Sales Value After }\
\text { Product } &\text { Tons  } &\text { at Split-Off  } &\text { Costs }& \text { Further Processing }\
\text { Main-1 } & 200 & \$ 4,000 & \$ 2,000 & \$ 10,000 \
\text { Main-2 } & 400 & 5,000 & 6,000 & 12,000 \
\text { By-product } & 300 & 2,000 & -0- & 2,000 \
\text { Waste } & 100 & -0- & -0- & -0-
\end{array}$
 If the firm allocates joint costs to the main products using the physical output method, how much will be allocated to Main-1?
A) $2,000
B) $2,400
C) $2,222
D) $3,333

Quizplus · Accepted Answer

The Answer of Recyclers, Inc. reprocesses paper and obtains 2 main products, a by-product and a waste. By-product revenues are treated as a reduction in joint costs. During the period 1,000 tons were processed at a cost of $12,000 for materials and processing, resulting in the following: $\begin{array}{lrrrr}
&&\text { Sales Value }&\text {Separable }&\text {Sales Value After }\
\text { Product } &\text { Tons  } &\text { at Split-Off  } &\text { Costs }& \text { Further Processing }\
\text { Main-1 } & 200 & \$ 4,000 & \$ 2,000 & \$ 10,000 \
\text { Main-2 } & 400 & 5,000 & 6,000 & 12,000 \
\text { By-product } & 300 & 2,000 & -0- & 2,000 \
\text { Waste } & 100 & -0- & -0- & -0-
\end{array}$
 If the firm allocates joint costs to the main products using the physical output method, how much will be allocated to Main-1?
A) $2,000
B) $2,400
C) $2,222
D) $3,333

Recyclers, Inc If the Firm Allocates Joint Costs to the Main Products