Joint Cost AllocationProduct Details:Product A:Sales Value at Split-off: $200,000Separate Costs after Split-off: $80,000Joint Costs Incurred:...
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Accounting
Joint Cost Allocation
Product Details:
- Product A:
- Sales Value at Split-off: $200,000
- Separate Costs after Split-off: $80,000
- Joint Costs Incurred: $40,000
- Product B:
- Sales Value at Split-off: $300,000
- Separate Costs after Split-off: $100,000
- Joint Costs Incurred: $60,000
Requirements:
- Allocate joint costs between Product A and Product B using the sales value at split-off method.
- Calculate the total cost for each product after allocation.
- Present the results in a detailed table format.
- Discuss the implications of the joint cost allocation on pricing decisions.
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