Use the Following Information to Answer the Following Questions

question 59

Multiple Choice

Use the following information to answer the following Questions
Cheyenne Enterprises manufactures Nuts and Bolts from a joint process (cost = $80,000) . Five thousand pounds of Nuts can be sold at split-off for $20 per pound; ten thousand pounds of Bolts can be sold at split-off for $15 per pound. For product costing purposes Cheyenne allocates joint costs using the relative sales value method.
-The amount of joint cost allocated to Nuts and Bolts, respectively, would be:

• A) $32,000 and $40,000.
• B) $32,000 and $48,000.
• C) $48,000 and $32,000.
• D) $40,000 and $32,000.
• E) $40,000 and $40,000.

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