Bevo Beef Company Uses the Relative Market Value Method of Allocating

question 80

Multiple Choice

Bevo Beef Company uses the relative market value method of allocating joint costs in their production of beef products.Relevant information for the current period follows:
$\begin{array}{lcc}& \text { Production in } & \text { Market } \\\text { Product } & \text { Pounds } & \text { Price/Pound }\\\text { Sirloin } & 3,000 & \$ 5.00 \\\text { Hamburger } & 10,000 & 2.00 \\\text { Rib eye } & 4,000 & 4.75 \\\text { Roast } & 6,000 & 3.50\end{array}$

The total joint cost for the current period was $43,000.How much of this cost should Bevo Beef allocate to sirloin?

• A) $0
• B) $5,909
• C) $8,600
• D) $10,750
• E) $43,000

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Definitions:

Export Supply

The total amount of goods and services a country is willing and able to sell abroad at a given price level.

Domestic Quantity Supplied

The total amount of a good or service that producers in a country are willing and able to sell at a certain price.

Domestic Quantity Demanded

The total amount of a good or service that is demanded by consumers within a specific country.

Hypothetical Nations

Imaginary or theoretical countries used for the purpose of discussion, analysis, or illustration in academic exercises.