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

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.Cardinal Company plans to produce 40,000 pounds of Product C and 20,000 pounds of Product U from 60,000 pounds of ore.Product C cannot be sold at the split-off point and must be processed further at a cost of $100,000,after which it can be sold for $45 per pound.Product U sells for $40 per pound.What amount of joint costs is allocated to Product C?

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