Karen Company manufactures three products from a joint process.Joint costs for the year amounted to $300,000.The following data was available:
$$\begin{array} { l l l }
\text { Product } & \text { Units Produced } & \text { sales Value at Split-off } \
\hline X& 5,000 & \$ 70,000 \
Y & 3,000 & \$ 30,000 \
Z & 2,000 & \$ 100,000
\end{array}$$
Assume the physical-units method of allocating joint costs is used.What amount of joint costs is allocated to Product X?
A) $70,000
B) $87,500
C) $150,000
D) $300,000

Question

Karen Company manufactures three products from a joint process.Joint costs for the year amounted to $300,000.The following data was available:
$$\begin{array} { l l l } 
\text { Product } & \text { Units Produced } & \text { sales Value at Split-off } \
\hline X& 5,000 & \$ 70,000 \
Y & 3,000 & \$ 30,000 \
Z & 2,000 & \$ 100,000
\end{array}$$
Assume the physical-units method of allocating joint costs is used.What amount of joint costs is allocated to Product X?
A) $70,000
B) $87,500
C) $150,000
D) $300,000

Quizplus · Accepted Answer

The Answer of Karen Company manufactures three products from a joint process.Joint costs for the year amounted to $300,000.The following data was available:
$$\begin{array} { l l l } 
\text { Product } & \text { Units Produced } & \text { sales Value at Split-off } \
\hline X& 5,000 & \$ 70,000 \
Y & 3,000 & \$ 30,000 \
Z & 2,000 & \$ 100,000
\end{array}$$
Assume the physical-units method of allocating joint costs is used.What amount of joint costs is allocated to Product X?
A) $70,000
B) $87,500
C) $150,000
D) $300,000

Karen Company Manufactures Three Products from a Joint Process Assume the Physical-Units Method of Allocating Joint Costs Is Used