Answer:
Joint cost value based = $396
Explanation:
Given:
Company L M
Quantities produced 200 lbs 150 lbs
Market value $8/lb $16/lb
Total joint cost = $660
Computation:
Market value of L = 200 lbs × $8/lbs
Market value of L = $1,600
Market value of M = 150 lbs × $16/lbs
Market value of M = $2,400
Total market value = Market value of L + Market value of M
Total market value = $1,600 + $2,400
Total market value = $4,000
Joint cost value based = $660 × ($2,400 / $4,000)
Joint cost value based = $396
