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 sales value at split-off point method, how much will be allocated to Main-2?
A) $5,556
B) $4,545
C) $5,333
D) $6,666

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 sales value at split-off point method, how much will be allocated to Main-2?
A) $5,556 
B) $4,545 
C) $5,333 
D) $6,666

Quizplus · Accepted Answer

The sales value at split-off point method allocates joint costs based on the proportion of each product's sales value at the split-off point. Without specific sales values, we assume the correct allocation is $5,556 based on the given options.

Use the Following Information for the Next 3 Questions