Multiple Choice
Baker Company
Baker Company produces three products: A,B,and C from the same process.Joint costs for this production run are $2,100.
Pounds | Sales price per lb. at split-off | Disposal cost per lb. at split-off | Further processing per pound | Final sales price per pound | |
A | 800 | $6.50 | $3.00 | $2.00 | $ 7.50 |
B | 1,100 | 8.25 | 4.20 | 3.00 | 10.00 |
C | 1,500 | 8.00 | 4.00 | 3.50 | 10.50 |
If the products are processed further,Baker Company will incur the following disposal costs upon sale: A,$3.00;B,$2.00;and C,$1.00.
Refer to Baker Company.Using a physical measurement method,what amount of joint processing cost is allocated to Product A (round to the nearest dollar) ?
A) $700
B) $679
C) $927
D) $494
Correct Answer:

Verified
Correct Answer:
Verified
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