What cost amount should be allocated to product a


Data pertaining to a company's joint manufacturing process for the current period follows:

  • Product A: Quantities produced 200lbs. processing cost after products are separated $1,100, market value at point of separation $8/lb.
  • Product B: Quantities produced 100lbs. processing cost after products are separated $400, market value at point of separation $16lb.

What cost amount should be allocated to Product A for this period's $660 of joint costs on the basis of market value at the point of separation?

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Accounting Basics: What cost amount should be allocated to product a
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