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The cost allocated to product B is A-75000 B-66667 C-50000 D-80000
1/6 share allocation to product B Answer option>>>>>>>>>>>>>> B-66667
Different methods to allocate the cost. But here due to units, we will allocate according to units produced.
Sum of all the units =75,000+25,000+50,000 =150,000 Units
Total Joint Cost =400,000,
So, for Product B
=400,000/150,000*25,000 =66,666.67 Cost
So, (B) is the Correct Ans
at its simple form, there is a total of150,000 units across the3 products.
[75' +25' +50'] =150'
assuming each of the3 products absorb equality quantity of output of the joint cost process product.
so per unit cost must be 2.67 (rounded)
[400/150 =2.66666]
making the answer66,667 is the correct answer, Option B)
B-66667. The cost allocation is3:1:2.
B
costs allocated to B =400000 * (25000/150000)
=66667
as per weighted average cost allocation path, the cost should be allocated to product B is66667
AN >>>>>>>>>>>>>>>>>>>>>>>>>>B-66667
