Question

Joint products Alpha and Beta emerge from common processing that costs $200,000 and yields 9,000 units of Product Alpha and 5,600 units of Product Beta. Product Alpha can be sold for $150 per unit. Product Beta can be sold for $90 per unit. What amount of the joint costs will be assigned to Product Beta if joint costs are allocated on the basis of number of units produced

Answer 1

Answer:

the amount of the joint cost allocated is $76,712.32

Explanation:

The computation of the amount of the joint cost allocated is shown below"

= Processing cost × beta units ÷ (alpha units + beta units)

= $200,000 × 5,600 units ÷ (9,000 units + 5,600 units)

= $76,712.32

Hence, the amount of the joint cost allocated is $76,712.32