Question: 1. A company produces three products, B1, B2, and B3. The joint cost incurred for the current month for these products is $180,000. The following data relate to this month's production:
Product                                                                Units                              Produced                                 Unit                       Sales Value
B1                                                                                                                            96,000                                                                                $3.00
B2                                                                                                                           64,000                                                                                6.00
B3                                                                                                                            32,000                                                                                 9.00
The amount of joint cost allocated to product B3 using the value basis allocation is (a) $30,000, (b) $54,000, or (c) $90,000.
2. Why are many companies divided into departments?