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How much of the joint cost will be assigned to product

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1. Owens Company expects to incur overhead costs of $10,000 per month and direct production costs of $125 per unit. The estimated production activity for the upcoming year is 1,200 units. If the company desires to earn a gross margin of $50 per unit, the sales price per unit would be which of the following amounts?

2. Joint products A and B emerge from common processing that costs $100,000 and yields 2,000 units of Product A and 1,000 units of Product B. Product A can be sold for $100 per unit. Product B can be sold for $120 per unit. How much of the joint cost will be assigned to Product A if joint costs are allocated on the basis of relative sales values?

Reference no: EM132079284

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