Fudd Company Manufactures Three Products from a Joint Process Assuming the Relative-Sales-Value Method of Allocating Joint Costs, the Amount

question 119

Multiple Choice

Fudd Company manufactures three products from a joint process.Joint costs for the year amounted to $250,000.The following data are also available: $\begin{array}{l}&&\text { Sales Value at }\\\text { Product } & \text { Units Produced } & \text { Split-off } \\\mathrm{X} & 5,000 & \$ 70,000 \\\mathrm{Y} & 3,000 & \$ 30,000 \\\mathrm{Z} & 2,000 & \$ 100,000\end{array}$ Assuming the relative-sales-value method of allocating joint costs, the amount of joint costs allocated to product Y would be _____.

• A)$75,000
• B)$250,000
• C)$37,500
• D)$30,000

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Definitions:

Large Numbers

Numerical values that are significantly larger than those typically used in everyday life, often requiring special notation or systems to express.

Participants

Individuals who take part in a study, experiment, or activity.

Illusory Correlation

The perception of a relationship between two variables when no such relationship exists.

Strange Behavior

Actions or reactions that deviate significantly from what is considered typical or socially acceptable.