Figure 6-1
Gilbert Production Company Incurred £150,000 to Manufacture the Following

question 16

Multiple Choice

Figure 6-1
Gilbert Production Company incurred £150,000 to manufacture the following products in a joint process: $\begin{array}{lrlr}&&&\text { Selling Price }\\\text { Product }&\text { Units Produced }&\text { Weight per Unit }&\text { per Unit }\\\text { A } & 250 & 4 \mathrm{kgs} . & £ 20 \\\mathrm{~B} & 500 & 3 \mathrm{kgs} . & 40 \\\mathrm{C} & 750 & 2 \mathrm{kgs} . & 40 \\\mathrm{D} & 1,000 & 1 \mathrm{kgs} . & 20\end{array}$
-Refer to Figure 6-1. How much joint cost would be allocated to product B based on the physical units method?

• A)£150,000
• B)£30,000
• C)£45,000
• D)£50,000

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Definitions:

Projected Sales

Forecasted revenue from goods or services that a company plans to sell over a certain period.

Value-based Pricing

A pricing strategy that sets prices primarily based on the perceived or estimated value of a product or service to the customer, rather than on its cost of production or historical prices.

Industrial Instrument

Industrial instrument involves tools and devices designed for industrial applications, including measuring, controlling, and monitoring processes.

Preventive Maintenance

Scheduled maintenance carried out to prevent machinery or equipment from failing, aimed at minimizing unexpected breakdowns and production stoppages.