Carey Ltd Manufactures Products X and Y from a Joint Process

question 53

Multiple Choice

Carey Ltd. manufactures Products X and Y from a joint process. Joint product costs were £60,000 during the month of December. Additional information is as follows: $\begin{array}{rrr}&&\text { Sales Value at }\\\text { Product }&\text { Units Produced }&\text { Split-Off per Unit }\\X & 10,000 & £ 24 \\Y & 5,000 & £ 8\end{array}$ What is the amount of joint product costs to be allocated to Product X during December using the sales-value-at-split-off method?

• A)£20,000
• B)£45,000
• C)£51,429
• D)£40,000

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Definitions:

Net Earnings

The amount of income left after deductions, such as taxes and social security charges, have been subtracted from gross income.

Paycheck

A document or electronic transfer that provides payment for employment services rendered, typically issued periodically at fixed intervals, like weekly or monthly.

Wage And Tax Statement

An official document, often referred to as a W-2 form in the United States, that reports an employee's annual wages and the amount of taxes withheld from their paycheck.