Question

Hsu Company manufactures two products (A and B) from a joint process that cost $200,000 for the year just ended. Each product may be sold at the split-off point or processed further. Additional processing requires no special facilities, and production costs of further processing are entirely variable and traceable to the products involved. Further information follows. If Processed Further Product Pounds Produced Per-Pound Sales Price Sales Value Separable Cost A 20,000 $ 12 $ 350,000 $ 90,000 B 30,000 8 300,000 60,000 If the joint costs are allocated based on the net-realizable-value method, the amount of joint cost assigned to product A would be:

Answer 1

$80,000

Step-by-step explanation:

Calculation to determine the amount of joint cost assigned to product A would be:

Joint cost assigned to product A =20,000 ÷(20,000 + 30,000)] x $200,000

Joint cost assigned to product A = $80,000

Therefore The the amount of joint cost assigned to product A would be:$80,00