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

Multiple Choice

Cardinal Company processes copper ore into two products, C and U.The ore costs $5 per pound and conversion costs are $15 per pound.Robin 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.Suppose that C cannot be sold at the split-off point.Instead, it must be processed further at a cost of $100,000, after which it can be sold for $45 per pound.The amount of joint cost allocated to product C would be _____.

A) $800,000
B) $720,000
C) $816,000
D) $384,000