Exercise 7-16 Tarjee Products produces two joint products (A and B). Prior to th

Question

Exercise 7-16

Tarjee Products produces two joint products (A and B). Prior to the split-off point, the company incurs costs of $5,900. Product A weighs 32 pounds, and Product B weighs 124 pounds. Product A sells for $94 per pound, and Product B sells for $37 per pound.

Based on relative sales values at the split-off point, allocate joint costs to Products A and B. (Round relative sales value proportion to 4 decimal places eg.0.4525 and final answers to 0 decimal places.)

Joint costs

Product A : $?

Product B : $?

Explanation / Answer

Calculations A B C = A x B E = C / $7,596 F G = E x F Product Weight Sales rate Sales value Sales as percentage of total Joint costs Cost allocation A 32 94 3008 0.3960 5900                    2,336 B 124 37 4588 0.6040 5900                    3,564 Total 7596 5900

Related Questions

Navigate

• Browse (All)
• Browse E
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.