Cheyenne Enterprises manufactures Nuts and Bolts from a joint process (cost= $90,000). Six thousand pounds of Nuts can be sold at split-off for $25 per pound; fifteen thousand pounds of Bolts can be sold at split-off for $20 per pound. For product costing purposes Cheyenne allocates joint costs using the relative sales value method. The amount of joint cost allocated to Bolts would be: Multiple Choice $90,000. $30,000.

Cheyenne Enterprises manufactures Nuts and Bolts from a joint process (cost= $90,000). Six thousand pounds of Nuts can be sold at split-off for $25 per pound; fifteen thousand pounds of Bolts can be sold at split-off for $20 per pound. For product costing purposes Cheyenne allocates joint costs using the relative sales value method. The amount of joint cost allocated to Bolts would be: Multiple Choice $90,000. $30,000.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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