Davis Company Davis Company Produces Three Products: A, B, and C

question 88

Multiple Choice

Davis Company Davis Company produces three products: A, B, and C from the same process. Joint costs for this production run are $2,100.
If the products are processed further, Davis Company will incur the following disposal costs upon sale: A, $3.00; B, $2.00; and C, $1.00.
Refer to Davis Company. Using net realizable value at split-off, what amount of joint processing cost is allocated to Product A (round to the nearest dollar) ?

• A) $706
• B) $951
• C) $700
• D) $444

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