Joint cost 400000- production from product A 4000- production from product B 8000 cost allocate to product b 1- 133334 2- 140000 3- 266667

This allocation is based on physical quantity so cost allocated to product b will be266667

cost allocated to product b will be266667

400000x4000/(4000+8000)=133334

If cot is allocated on the basis of no of units it would be3-266667

The Production cost allocate to product2 -266667

As to percentage of production volume cost allocation, the total allocated cost to Product B is266,667.00 [400,000 x66.67% (8000/12000)]

3.266,667 is the correct answer having the production units as the basis of common cost allocation.

2/3 allocation of Joint cost to Product B =266667