Question

The Silver Center (TSC) produces cups and platters. TSC purchases silver and other metals that are processed into silver alloy that is used to make platters and cups. TSC incurred $52,000 of materials cost and $56,000 of labor cost to produce the silver alloy. Platters are made first and the residual alloy is remixed into a lower grade silver plated material that is used to make the cups. Remixing cost amount to $5,000. The recent batch contained 10,000 platters and 4,000 cups. TSC sold the platters for $160,000 and the cups for $24,000. Based on this information the total amount of joint cost is?

Answer 1

The total amount of joint cost is $113,000.

Step-by-step explanation:

The total amount of joint cost can be calculated by adding together the cost of materials, labor, and remixing cost.

In this case, the materials cost for producing the silver alloy is given as $52,000 and the labor cost is $56,000. Additionally, the remixing cost is provided as $5,000.

To determine the joint cost, we simply add up these costs:

$52,000 (materials cost) + $56,000 (labor cost) + $5,000 (remixing cost) = $113,000 (total joint cost).

By summing up the materials cost, labor cost, and remixing cost, we arrive at the total joint cost of $113,000.