Lassie Company Manufactures Three Products from a Joint Process Assuming the Physical- Units Method of Allocating Joint Costs, the Costs

question 16

Multiple Choice

Lassie Company manufactures three products from a joint process. Joint costs for the year amounted to $250,000. The following data are also available: $\begin{array}{lll}&&\text { Sales Value at }\\\text { Product }&\text { Units Produced }&\text { Split-off }\\\mathrm{X} & \mathbf{5 , 0 0 0} & \$ 70,000 \\\mathrm{Y} & \mathbf{3 , 0 0 0} & \$ 30,000 \\\mathrm{Z} & \mathbf{2 , 0 0 0} & \$ 100,000\end{array}$ Assuming the physical- units method of allocating joint costs, the amount of joint costs allocated to product X would be:

• A) $70,000
• B) $125,000
• C) $250,000
• D) $87,500

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