Alvarez Company Makes Three Joint Products,products A,B,and C

question 1

Essay

Alvarez Company makes three joint products,products A,B,and C.For each batch,the materials cost is $16,000,direct labor cost is $4,000,and manufacturing overhead is $10,000.From each batch,the company makes 2,000 pounds of A,1,200 pounds of B,and 800 pounds of C.
Required:
1)What are the total joint costs for each batch of the products?
2)Allocate the joint costs to each of the three products.
3)Determine the cost per pound for product A.

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Definitions:

Need-Payoff Question

A question asked by a salesperson to help a potential customer realize the value and benefits of a product, leading to their own conclusion that the product can satisfy their needs.

SPIN Approach

A sales technique that involves asking Situation, Problem, Implication, and Need-payoff questions to understand customer needs and offer solutions.

Rechargeable Batteries

Batteries that can be restored to full charge by applying electrical energy, often used in various electronic devices.

SPIN Approach

stands for Situation, Problem, Implication, and Need-Payoff, a consultative selling technique that focuses on asking the right questions to understand and address customer needs effectively.