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Data pertaining to a company's joint production for the current period follows
L M
Quantities produced 310 lbs 260 lbs
Market value at split-off point . $10.2Mb $20.4/lb
Compute the cost to be allocated to Product L for this period's $792 of joint costs if the value basis is used. (Do not round intermediate calculations.)
a. $295.81.
b. $49619.
c. $39600.
d. $2,926.00.
e. $962.19.

Respuesta :

Tundexi

Answer:

a. $295.81

Explanation:

Total market value = (310 * 10.2) + (260 * 20.4)

Total market value = 3,162 + 5,304

Total market value = 8466

Joint cost allocated to L on basis of value

= [ (310 * 10.2) / 8,466] * 792

= (3,162 / 8,466) * 792

= $295.81