Question

Three products result from a joint production process. There are 50 units of product B158, 100 units of product B159, and 50 units of product B160. Using the physical units method, what percent of the joint costs will be allocated to product B159?

a. 50%
b. 25%
c. 75%
d. 33%

Answer 1

the correct option is a. 50%

Step-by-step explanation:

The computation of the percentage of the joint cost that would be allocated to product B159 is shown below:

= Units in product B159 ÷ Total units

= 100 units ÷ (50 units + 100 units + 50 units)

= 100 units ÷ 200 units

= 50%

Hence, the percentage allocated to product B159 is 50%

Therefore the correct option is a. 50%