A company spends $200,000 and produces 10,000 pounds of product X and 20,000 pounds of product Y. The joint cost will be allocated between these two based on units produced. The company also produced 1,000 pounds of product Z that can be sold for $6 per pound after spending $1 per pound to put into appropriate packages. Product Z is viewed as a by-product and recorded at net realizable value. What portion of the joint cost is allocated to product X? a. $64,250 b. $60,000 C. $65,000
A company spends $200,000 and produces 10,000 pounds of product X and 20,000 pounds of product Y. The joint cost will be allocated between these two based on units produced. The company also produced 1,000 pounds of product Z that can be sold for $6 per pound after spending $1 per pound to put into appropriate packages. Product Z is viewed as a by-product and recorded at net realizable value. What portion of the joint cost is allocated to product X? a. $64,250 b. $60,000 C. $65,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:A company spends $200,000 and
produces 10,000 pounds of product X and
20,000 pounds of product Y. The joint cost
will be allocated between these two based
on units produced. The company also
produced 1,000 pounds of product Z that
can be sold for $6 per pound after
spending $1 per pound to put into
appropriate packages. Product Z is viewed
as a by-product and recorded at net
realizable value. What portion of the joint
cost is allocated to product X?
a.
$64,250
b.
$60,000
C.
$65,000
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