Double Company produces three products DBB-1, DBB-2, and DBB-3 from a joint...
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Accounting
Double Company produces three products DBB-1, DBB-2, and DBB-3 from a joint process. Each product may be sold at the split-off point or processed further. Additional processing requires no special facilities, and production costs of further processing are entirely variable and traceable to the products involved. Key information about Double's production, sales, and costs follows.
DBB-1
DBB-2
DBB-3
Total
Units Sold
17,000
25,500
37,500
80,000
Price (after additional processing)
$ 65
$ 50
$ 75
Separable Processing cost
$ 116,875
$ 46,750
$ 68,750
$ 232,375
Units Produced
17,000
25,500
37,500
80,000
Total Joint Cost
$ 3,800,000
Sales Price at Split-off
$ 25
$ 35
$ 55
The amount of joint costs allocated to product DBB-2 using the sales value at split-off method is:
Multiple Choice
$1,003,402.
$718,250.
$477,811.
$892,500.
$2,318,787.
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