Benjamin Company produces two products from a joint process: X and Z. Joint processing costs for this production cycle are $8,000. Yards Sales price per yard at split-off Disposal cost per yard at split-off Further processing per yard Final sale price per yard X 1,500 $6.00 $3.50 $1.00 $7.50 Z 2,200 9.00 5.00 3.00 11.25 If X and Z are processed further, no disposal costs will be incurred or such costs will be borne by the buyer. Refer to Benjamin Company. Using sales value at split-off, what amount of joint processing cost is allocated to Product X (round to the nearest dollar)

Respuesta :

Answer:

Benjamin Company

Using sales value at split-off, the amount of joint processing cost allocated to Product X is:

= $2,500.

Explanation:

a) Data and Calculations:

Joint Products                               X            Y          Total

Joint processing cost                                             $8,000

Units                                             1,500     2,200     3,700

Sales price per yard                   $6.00     $9.00

Sales value at split-off             $9,000 $19,800 $28,800

Disposal cost per yard                 3.50       5.00

Further processing per yard        1.00       3.00

Final sales price per yard            7.50       11.25

Product X = $2,500 ($8,000 * $9,000/$28,800)