Multiple Choice
Santelle Company processes copper ore into two products,C and U.The ore costs $5 per pound and conversion costs are $15 per pound.Santelle 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 sells for $30 per pound and Product U sells for $40 per pound.Assume the company uses the relative-sales-value method of allocating joint costs.What amount of joint costs is allocated to Product U?
A) $0
B) $400,000
C) $480,000
D) $685,714
Correct Answer:
Verified
Correct Answer:
Verified
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