The Mallak Company produced three joint products at a joint cost of $100,000. Two of these products were processed further. Production and sales were:ProductWeightSalesAdditional Processing CostsP300,000lbs.$245,000 $200,000 Q100,000lbs. 30,000  -0- R100,000lbs. 175,000  100,000 Assume Q is a by-product and Mallak uses the cost reduction method of accounting for by-product cost. If estimated net realizable value is used, how much of the joint costs would be allocated to product R?

A. $62,500.
B. $38,889.
C. $43,750.
D. $50,000.


Answer: C

Business

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