Use the following information for the next 3 questions.
Recyclers, Inc. reprocesses paper and obtains 2 main products, a by-product, and 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:
-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

Use the following information for the next 3 questions.
Recyclers, Inc. reprocesses paper and obtains 2 main products, a by-product, and 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: 
-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 physical output method allocates joint costs based on the proportion of each product's physical output to the total output. Without specific output data, we assume Main-1's allocation is based on the given choice that fits typical allocation scenarios.

Use the Following Information for the Next 3 Questions