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Question - 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.
Required -
How much of the joint cost will be assigned to Product B if joint costs are allocated on the basis of relative sales values?
What is Product B's profit if joint costs are allocated on the basis of relative sales values?
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?
What is Product B's profit if joint costs are allocated on the basis of number of units produced?
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