Question

Comfort Cords produces curtain cords. In the process of manufacturing those cords, it also produces hair ties which are sold separately. In the month of June, 60,000 units of cords were manufactured which resulted in the production 10,000 hair ties. 50,000 cords were sold at a price of $12 and 9,000 hair ties were sold at a price of $1.00. Joint costs incurred in the process amounted to $450,000. What is the value of revenue in June for Comfort Cords?

Answer 1

Answer:

$609,000

Explanation:

The revenue in June for  Comfort Cords is the sum of the revenue from cords and hair ties.

The revenue from each is the product of the unit selling price and the quantity sold.

= 50000 * $12 + 9000 * $1

= $600,000 + $9000

= $609,000