The Mallak Company Produced Three Joint Products at a Joint

question 73

Multiple Choice

The Mallak Company produced three joint products at a joint cost of $100,000. Two of these products were processed further. Production and sales were:
$\begin{array}{cccc}&&&\text { Additional Processing }\\\text { Product } & \text { Weight } & \text { Sales } & \text { Costs } \\ \text { P } & 300,000 \mathrm{lbs}& \$ 245,000 & \$ 200,000 \\ \text { Q } & 100,000 \mathrm{lbs} & 30,000 & -0- \\ \text { R } & 100,000 \mathrm{lbs} &175,000 &100,000 \\\end{array}$

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If joint costs are allocated based on relative weight of the outputs and all products are main products, how much of the joint costs would be allocated to product P?

• A) $43,750.
• B) $50,000.
• C) $60,000.
• D) $62,500.

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Definitions:

Sale Price

The amount of money for which a product or service is sold to the consumer.

Par Value

The nominal or face value of a stock or bond, as stated by the issuing company.

Prior Period Adjustment

Adjustments made to amend previously issued financial statements for errors or changes in accounting principles.

Depreciation Expense

The systematic allocation of the cost of tangible assets over their useful lives, reflecting wear and tear or obsolescence.