Amos, SA., manufactures products A and B from a joint process. Joint product costs were £40,000 during the month of October. Additional information is as follows: Sales Values at
Product
Units Produced
Split-Off
A
14,000
£110,000
B
6,000
£90,000
Amos uses the physical units method of joint cost allocation. What is the amount of joint product costs to be allocated to products A and B in October, respectively?
A) £20,000; £20,000
B) £22,000; £18,000
C) £28,000; £12,000
D) £12,000; £28,000
Correct Answer:
Verified
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