Lux Company Processes Copper Ore into Two Products, C and U.The

Multiple Choice

Lux Company processes copper ore into two products, C and U.The ore costs $5 per pound and conversion costs are $15 per pound.Lux Company plans to produce 40,000 pounds of C and 20,000 pounds of U from 60,000 pounds of ore.C sells for $30 per pound and U sells for $40 per pound.Assuming the physical-units method of allocating joint costs, the amount of joints costs allocated to product U would be _____.

A) $800,000
B) $400,000
C) $300,000
D) $100,000