Use the Following Information for the Next 3 Questions

question 49

Multiple Choice

Use the following information for the next 3 questions.
Recyclers, Inc. reprocesses paper and obtains 2 main products, a by-product, and waste. By-product revenues are treated as a reduction in joint costs. During the period, 1,000 tons were processed at a cost of $12,000 for materials and processing, resulting in the following:
-If the firm allocates joint costs to the main products using the sales value at split-off point method, how much will be allocated to Main-2?

• A) $5,556
• B) $4,545
• C) $5,333
• D) $6,666

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