Roosevelt Company Processes Copper Ore into Two Products, C and U

Multiple Choice

Roosevelt Company processes copper ore into two products, C and U. The ore costs $5 per pound and conversion costs are $15 per pound. Roosevelt 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 joint costs to product C would be:

A) $600,000
B) $0
C) $800,000
D) $200,000