What the amount of joint cost allocated to the mine support

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Sonimad Sawmill manufactures two lumber products from a joint milling process. The two products are mine support braces (MSB) and unseasoned commercial building lumber (CBL). A standard production run incurs joint costs of $300,000 and results in 60,000 units of MSB and 90,000 units of CBL. Each MSB sells for @4 per unit, and each CBL sells for $4 per unit.

Problem 1: If there are no further processing cost incurred after the spilt-off point, the amount of joint cost allocated to the mine support braces (MSB) on a relative sales - value basis would be

a) $75,000
b) $180,000
c) $225,000
d) $120,000

Reference no: EM132666896

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