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 amounts 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. Assume number of units is used as the base to allocate the joint cost. Based on this information

Answer 1

The subject of this question is joint costs in the production of silver cups and platters.

Step-by-step explanation:

In this case, the subject is about joint costs in the production of silver cups and platters by The Silver Center (TSC).

Joint costs are costs incurred in the production of multiple products from a common input. The materials and labor costs incurred by TSC to produce the silver alloy are considered joint costs, as they are shared between the platters and cups.Based on this information, the primary topic is joint costs in the production of silver cups and platters.