Coconuts N More produces two joint products, Coconut Milk and Coconut Meat. The company uses the leftover Coconut Skin as a by-product. All three are produced from joint costs of $75,000: direct materials amounting to $50,000 and another $25,000 for direct labor and manufacturing overhead. Beginning inventory for all three products is zero. Information for production of the product is as follows: How much in total sales would be recorded for the products sold under the production method?
A)$89,210.
B)$91,210.
C)$102,940.
D)$105,190.

Question

Coconuts N More produces two joint products, Coconut Milk and Coconut Meat. The company uses the leftover Coconut Skin as a by-product. All three are produced from joint costs of $75,000: direct materials amounting to $50,000 and another $25,000 for direct labor and manufacturing overhead. Beginning inventory for all three products is zero. Information for production of the product is as follows:  How much in total sales would be recorded for the products sold under the production method?
A)$89,210. 
B)$91,210. 
C)$102,940. 
D)$105,190.

Quizplus · Accepted Answer

(19,500 x $1.30) + (10,300 x $6.20) = $89,210
(Coconut milk units sold x Coconut milk sales price per lb) + (Coconut meat units sold x Coconut meat sales price per lb)

Coconuts N More Produces Two Joint Products, Coconut Milk and Coconut