Laredo Manufactures Nuts and Bolts from a Joint Process (Cost

question 69

Multiple Choice

Laredo manufactures Nuts and Bolts from a joint process (cost = $80,000) . Five thousand pounds of Nuts can be sold at split-off for $20 per pound; ten thousand pounds of Bolts can be sold at split-off for $15 per pound. For product costing purposes Laredo allocates joint costs using the relative sales value method.
The amount of joint cost allocated to Nuts would be:

• A) $32,000.
• B) $40,000.
• C) $48,000.
• D) $60,000.
• E) $80,000.

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