Spaniel Company Manufactures Three Products from a Joint Process Assuming the Relative- Sales- Value Method of Allocating Joint Costs

Multiple Choice

Spaniel Company manufactures three products from a joint process. Joint costs for the year amounted to $250,000. The following data are also available: $$\begin{array}{l}\begin{array} { l l l } &&\text { Sales Value at }\\\text { Product } & \text { Units Produced } & \text { Split- off } \\\text { X } & 5,000 & \$ 70,000 \\\text { Y } & 3,000 & \$ 30,000 \\\text { Z } & 2,000 & \$ 100,000\end{array}\end{array}$$ Assuming the relative- sales- value method of allocating joint costs, the amount of joint costs allocated to product X would be:

A) $87,500
B) $125,000
C) $70,000
D) $250,000