Cheyenne Enterprises manufactures Nuts and Bolts from a joint process (cost = $80,000). Five thousand pounds of Nuts can be sold at split-off for $20 per pound; ten thousand pounds of Bolts can be sold at split-off for $15 per pound. For product costing purposes Cheyenne allocates joint costs using the relative sales value method.The amount of joint cost allocated to Bolts would be:
A. $60,000.
B. $32,000.
C. $40,000.
D. $80,000.
E. $48,000.
Answer: E
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