Use the following information for the next 6 questions.
J-M Company uses a joint process costing $15,000 to produce three main products. The company had no beginning inventory. Its current period operation data follow:
-If J-M sells products at the split-off point and uses the relative sales value at split-off point method to allocate joint costs, what is the carrying value of ending inventory for product T?
A) $1,717
B) $2,575
C) $2,250
D) $1,500

Question

Use the following information for the next 6 questions.
J-M Company uses a joint process costing $15,000 to produce three main products. The company had no beginning inventory. Its current period operation data follow: 
-If J-M sells products at the split-off point and uses the relative sales value at split-off point method to allocate joint costs, what is the carrying value of ending inventory for product T?
A) $1,717 
B) $2,575 
C) $2,250 
D) $1,500

Quizplus · Accepted Answer

The relative sales value at split-off point method allocates joint costs based on the proportion of the sales value of each product at the split-off point. The carrying value of ending inventory for product T is calculated using this method, resulting in $1,717.

Use the Following Information for the Next 6 Questions