Joint Products a and B Emerge from Common Processing That

question 21

Multiple Choice

Joint products A and B emerge from common processing that costs $150,000 and yields 8,000 units of Product A and 4,000 units of Product B Product A can be sold for $100 per unit. Product B can be sold for $80 per unit. What amount of the joint costs will be assigned to Product B if joint costs are allocated on the basis of number of units produced? (Do not round your intermediate calculations.)

• A)$42,857
• B)$66,667
• C)$50,000
• D)$100,000

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Definitions:

U.S. Dollar Income Statement

A financial statement presenting a company's revenues, expenses, and profits denominated in U.S. dollars.

Functional Currency

The primary currency of the primary economic environment in which an entity operates, used in measuring its financial performance and position.

Foreign Exchange

The conversion or trading of one national currency into another, and the global market where these exchanges occur.