Soren Company Makes Two Products from a Joint Input That

question 28

Multiple Choice

Soren Company makes two products from a joint input that have the following information: $\begin{array}{lrrrr}&\text { Units } & \text { Sales Value } & \text { Total Additional } & \text { Sales Value } \\&&\text { Per Unit } & \text { Processing } & \text { Per Unit After } \\&\text { Produced } & \text { At Split-Off } & \text { Costs } & \text { Additional Processing }\\\hline\text { Product A } & 40,000 & \$ 10 & \$ 400,000 & \$ 15 \\\text { Product B } & 150.000 & 4 & 300,000 & 7\end{array}$ The joint cost incurred to produce the two products to the split-off point is $600,000. How much joint cost should be allocated to Product A using the relative sales value at split-off as the allocation method?

• A) $600,000
• B) $126,316
• C) $400,000
• D) $240,000

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