Amos, SA, Manufactures Products a and B from a Joint Process

question 37

Multiple Choice

Amos, SA., manufactures products A and B from a joint process. Joint product costs were £40,000 during the month of October. Additional information is as follows: $\begin{array}{lrr}&&\text { Sales Value at }\\\text { Product }&\text { Units Produced }&\text { Split-Off }\\\text { A } & 14,000 & £ 110,000 \\B & 6,000 & £ 90,000\end{array}$ Amos uses the sales-value-at-split-off method of joint cost allocation. What is the amount of joint product costs to be allocated to products A and B in October, respectively?

• A)£20,000; £20,000
• B)£22,000; £18,000
• C)£28,000; £12,000
• D)£18,000; £22,000

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Definitions:

Financial Markets

Markets in which financial assets are traded—for example, the stock market.

Managements

The process of dealing with or controlling things or people within an organization, including planning, organizing, leading, and controlling.

Target Companies

Businesses that are identified as potential acquisition candidates by other companies or investors.

Target's Stockholders

The shareholders of a company that is the object of a takeover or acquisition.