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Joint products A and B emerge from common processing that costs $240,000 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 $50 per unit.
Problem 1: How much of the joint cost will be assigned to Product B if joint costs are allocated on the basis of relative sales values?
Problem 2: What is Product B's profit if joint costs are allocated on the basis of relative sales values?
Problem 3: How much of the joint cost will be assigned to Product B if joint costs are allocated on the basis of number of units produced?
Problem 4: What is Product B's profit if joint costs are allocated on the basis of number of units produced?
Compute the amount of overhead allocated to each of the products under activity-based costing. Compute the amount of overhead to be allocated to each product using labor hours as the allocation base.
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Determine how many units of each product Whitt must sell in order to breakeven in 2012 and companys fixed selling and administrative expanses are forecasted to be $500,000. Whitt has a tax rate of 40 percent.
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