Cariboo Manufacturing Company Incurred a Joint Cost of $600,000 in the Production

Multiple Choice

Cariboo Manufacturing Company incurred a joint cost of $600,000 in the production of X and Y in a joint process.Presently,1,800 of X and 1,400 of Y are being produced each month.Management plans to decrease X's production by 300 units in order to increase the production of Y by 500 units.Additionally,this change will require minor modifications,which will add $20,000 to the joint cost.This cost is entirely attributable to product Y.What is the amount of the joint costs allocable to X and Y before changes to existing production assuming Cariboo allocates their joint costs according to the proportion of Y and X produced? $$\begin{array} { | l | r | r | } \hline & \text { Product } & \text { Product } Y \\\hline \text { A. } & \$ 262,500 & \$ 337,500 \\\hline \text { B. } & \$ 264,706 & \$ 335,294 \\\hline \text { C. } & \$ 273,529 & \$ 326,471 \\\hline \text { D. } & \$ 337,500 & \$ 262,500 \\\hline\end{array}$$

A) Option A
B) Option B
C) Option C
D) Option D