Westfield Manufacturing produced 15,000 units of Product A and 25,000 units of Product B. The joint production costs were $84,000. At the split-off point, Product A has a market value of $8 per unit and Product B has a market value of $5 per unit. Calculate the portion of joint costs to be allocated to Product B using the value basis method.

Westfield Manufacturing produced 15,000 units of Product A and 25,000 units of Product B. The joint production costs were $84,000. At the split-off point, Product A has a market value of $8 per unit and Product B has a market value of $5 per unit. Calculate the portion of joint costs to be allocated to Product B using the value basis method.

Principles of Cost Accounting

17th Edition

ISBN:9781305087408

Author:Edward J. Vanderbeck, Maria R. Mitchell

Publisher:Edward J. Vanderbeck, Maria R. Mitchell

Chapter6: Process Cost Accounting—additional Procedures; Accounting For Joint Products And By-products

Section: Chapter Questions

Problem 14E: LeMoyne Manufacturing Inc.’s joint cost of producing 2,000 units of Product X, 1,000 units of...

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