Use the Following Information to Answer the Following Questions

question 62

Multiple Choice

Use the following information to answer the following Questions
Stoney Brook Company produces two products (X and Y) from a joint process. Each product may be sold at the split-off point or processed further. Additional processing requires no special facilities, and production costs of further processing are entirely variable and traceable to the products involved. Joint manufacturing costs for the year were $60,000. Sales values and costs were as follows:


-If the joint production costs are allocated based on the relative-sales-value method, the amount of joint cost assigned to product X would be:

• A) $20,000.
• B) $27,000.
• C) $33,000.
• D) $40,000.
• E) None of the answers is correct.

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