Goyette Company Processes Copper Ore into Two Products,C and U

question 50

Multiple Choice

Goyette Company processes copper ore into two products,C and U.The ore costs $5 per pound and conversion costs are $15 per pound.Goyette Company plans to produce 40,000 pounds of Product C and 20,000 pounds of Product U from 60,000 pounds of ore.Product C sells for $30 per pound and Product U sells for $40 per pound.Assume the company uses the relative-sales-value method of allocating joint costs.What amount of joint costs is allocated to Product C?

• A) $400,000
• B) $514,286
• C) $720,000
• D) $800,000