Bennett Company produces two products from a joint process: A and C. Joint processing costs for this production cycle are $9,000. YardsSales price per yard at split-offDisposal cost per yard at split-offFurther processing per yardFinal sale price per yardA1,800$7.00$4.50$1.50$8.00C2,60010.006.003.5012.25If A and C are processed further, no disposal costs will be incurred or such costs will be borne by the buyer. Refer to Bennett Company. Using sales value at split-off, what amount of joint processing cost is allocated to Product A (round to the nearest dollar)?$2,938$6,062$3,682$4,500

Answered: what amount of joint processing cost is…

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter7: Allocating Costs Of Support Departments And Joint Products

Section: Chapter Questions

Problem 27E: Pacheco, Inc., produces two products, overs and unders, in a single process. The joint costs of this...

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Bennett Company produces two products from a joint process: A and C. Joint processing costs for this production cycle are $9,000.

	Yards	Sales price per yard at split-off	Disposal cost per yard at split-off	Further processing per yard	Final sale price per yard
A	1,800	$7.00	$4.50	$1.50	$8.00
C	2,600	10.00	6.00	3.50	12.25

If A and C are processed further, no disposal costs will be incurred or such costs will be borne by the buyer. Refer to Bennett Company. Using sales value at split-off, what amount of joint processing cost is allocated to Product A (round to the nearest dollar)?

$2,938
$6,062
$3,682
$4,500

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