Dallas Company has a manufacturing process 8 pounds of A, 10
pounds of B and 50 pounds of C. Manufacturing costs total $60. A
sells for $5 per pound, B sells for $4 per pound and C sells for 40
cents per pound.
Assuming that all three products are considered to be joint products, the cost per pound assigned to:
A is $
B is $
C is $
Assuming that A and B are considered to be joint products and C is considered to be a by-product with a certain market, the cost per pound assigned to:
A is $
B is $
C is $
Assuming that A and B are considered to be joint products and C is
considered to be a by-product with an uncertain market, the cost
per pound assigned to:
A is $
B is $
C is $
| Product | Pounds | Selling price | Sales value | ratio | Cost to be allocated | Cost allocated |
| A | 8 | $5 | $40 | 40% | $60 | $24 |
| B | 10 | $4 | $40 | 40% | $60 | $24 |
| C | 50 | 0.4 | $20 | 20% | $60 | $12 |
| ans 1 | ||||||
| Product | ||||||
| A | $24 | |||||
| B | $24 | |||||
| C | $12 | |||||
| ans 2 | ||||||
| Product | ||||||
| A | $24 | |||||
| B | $24 | |||||
| C | $12 | |||||
| ans 3 When market of by product is uncertain than the answer is | ||||||
| Product | ||||||
| A | $30 | |||||
| B | $30 | |||||
| C | $0 | |||||
| If any doubt please comment |
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