Assume the Total Manufacturing Costs Are $12 000 and That

question 27

Multiple Choice

Assume the total manufacturing costs are $12 000 and that two products are produced. Information about these two products is as follows.
$\begin{array}{cc}\underline{\text { Product }} & \underline{\text { Quantity }} & \underline{\text { Net sales value} }\\A & 6000 &\$14000\\B & 4000 &7000\\\end{array}$ For inventory costing purposes what is the amount of joint costs that should be assigned to Product A on a per unit basis?

• A) $1.05
• B) $1.20
• C) $1.75
• D) $2.80