The Mallak Company Produced Three Joint Products at a Joint

question 91

Multiple Choice

The Mallak Company produced three joint products at a joint cost of $100,000.Two of these products were processed further.Production and sales were:
$$\begin{array} { | l | c | r | r | } \hline & \text { Veight } & \text { Sales } & \text { Adit. Processing Costs } \\\hline \mathrm { P } & 300,000 \mathrm { ks } . & \$ 245,000 & \$ 200,000 \\\hline \mathrm { Q } & 100,000 \mathrm { ks } . & 30,000 & - 0 \\\hline \mathrm { R } & 100,000 \mathrm { ks } . & 175,000 & 100,000 \\\hline\end{array}$$ If joint costs are allocated based on relative weight of the outputs and all products are main products,how much of the joint costs would be allocated to product P?

• A) $43,750.
• B) $50,000.
• C) $60,000.
• D) $62,500.

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Definitions:

Percentage Change

A mathematical calculation that depicts the degree of change over time, usually expressed as a percentage.

Break-Even

The point at which total costs and total revenue are equal, meaning there is no net loss or gain, and one has "broken even."

Monthly

Pertaining to or calculated for a period of one month.

Variable Expense

Expenses that fluctuate with changes in production volume or level of activity, similar to variable costs.