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Blum Company produces three products: A, B, and C from the same process. Joint costs for this production run are $2,100. Pounds Sales price per lb. at split-off Disposal cost per lb. at split-off Further processing per pound Final sales price per pound A 800 $6.50 $3.00 $2.00 $7.50 B 1,100 8.25 4.20 3.00 10.00 C 1,500 8.00 4.00 3.50 10.50 If the products are processed further, Blum Company will incur the following disposal costs upon sale: A, $3.00; B, $2.00; and C, $1.00. Refer to Blum Company. Using sales value at split-off, what amount of joint processing cost is allocated to Product B (round to the nearest dollar)? $725 $416 $959 $700

Blum Company produces three products: A, B, and C from the same process. Joint costs for this production run are $2,100. Pounds Sales price per lb. at split-off Disposal cost per lb. at split-off Further processing per pound Final sales price per pound A 800 $6.50 $3.00 $2.00 $7.50 B 1,100 8.25 4.20 3.00 10.00 C 1,500 8.00 4.00 3.50 10.50 If the products are processed further, Blum Company will incur the following disposal costs upon sale: A, $3.00; B, $2.00; and C, $1.00. Refer to Blum Company. Using sales value at split-off, what amount of joint processing cost is allocated to Product B (round to the nearest dollar)? $725 $416 $959 $700

Managerial Accounting
Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter5: Support Department And Joint Cost Allocation
Section: Chapter Questions
Problem 3CMA: Breegle Company produces three products (B-40, J-60, and H-102) from a single process. Breegle uses...
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  1. Blum Company produces three products: A, B, and C from the same process. Joint costs for this production run are $2,100.


Pounds

Sales price
per lb. at
split-off

Disposal
cost per
lb. at
split-off

Further
processing
per pound

Final
sales price
per pound

A

800

$6.50

$3.00

$2.00

$7.50

B

1,100

8.25

4.20

3.00

10.00

C

1,500

8.00

4.00

3.50

10.50

If the products are processed further, Blum Company will incur the following disposal costs upon sale: A, $3.00; B, $2.00; and C, $1.00.

Refer to Blum Company. Using sales value at split-off, what amount of joint processing cost is allocated to Product B (round to the nearest dollar)?

  1. $725
  2. $416
  3. $959
  4. $700
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