Data Pertaining to a Company's Joint Manufacturing Process for the Current

question 153

Multiple Choice

Data pertaining to a company's joint manufacturing process for the current period follows: $\begin{array}{lcc}&\text { Product }&\text { Product }\\& \underline { A }& \underline { B }\\\text { Quantities produced } & 200 \mathrm{lbs} . & 100 \mathrm{lbs} . \\\begin{array}{c}\text { Processing cost after } \\\text { products are separated }\end{array} & \$ 1,100 & \$ 400 \\\begin{array}{l}\text { Market value at point } \\\text { of separation }\end{array} & \$ 8 / 1 \mathrm{~b} & \$ 16 / 1 \mathrm{~b} .\end{array}$ What cost amount should be allocated to Product A for this period's $660 of joint costs on the basis of market value at the point of separation?

• A)$330.00
• B)$440.00
• C)$220.00
• D)$194.12
• E)$484.00

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Definitions:

Equivalent Units

A concept used in cost accounting to standardize the quantity of production output, facilitating the calculation of costs per unit in processes with partial completion.

Process Costing

A cost accounting system used where production occurs through continuous processes or batches, aggregating costs over a specific period to calculate per-unit costs.

Weighted-Average Method

A method of valuing inventory and determining cost of goods sold that uses the average cost of all units available for sale during the period.

Assembly Department

Assembly Department is a specific section within a manufacturing company where components are assembled into final products.