A Joint Input Costing $500 Results in Four Distinct Products

question 100

Multiple Choice

A joint input costing $500 results in four distinct products at the point of split-off. Relevant data follows: $\begin{array}{lrrr}&\text { Sales Value }& \text { Separable }& \text { Sales Value After }\\\text { Product }& \text { at Split-Off } & \text { Cost } & \text { Further Processina }\\\hline\mathrm{J }& \$ 200 & \$ 100 & \$ 400 \\\mathrm{K} & 300 & 200 & 600 \\\mathrm{L} & 100 & 50 & 140 \\\mathrm{M} & 20 & 10 & 40\end{array}$ Assume that after the split-off point one unit of J can be processed directly into one unit of K, and then processed further as shown for product K. For the purpose of making this decision, what is the opportunity cost to be assigned to a unit of J?

• A) $400
• B) $300
• C) $200
• D) $100

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