Bare Company Manufactures Four Products from a Joint Process

question 94

Multiple Choice

Bare Company manufactures four products from a joint process. Joint costs for the year amounted to $140,000. The following data are also available:

-Assuming the relative-sales-value method of allocating joint costs, the amount of joint costs allocated to product B would be

• A) $35,840.00.
• B) $48,124.80.
• C) $30,800.00.
• D) $20,160.00.

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Definitions:

Selected

Chosen from a group based on specific criteria or for a specific purpose.

Limited Liability Company

A Limited Liability Company (LLC) is a business structure that offers personal liability protection to its owners, along with tax and operational flexibility.

Formed

The process of creating or establishing something, often referring to the formation of a legal or structured entity such as a company or agreement.

Advantages and Disadvantages

A consideration of the positive and negative aspects of a particular decision, action, or strategy.