Hsu Company manufactures two products (A and B) from a joint process that cost $200,000 for the year just ended. Each product may be sold at the split-off point or processed further. Additional processing requires no special facilities, and production costs of further processing are entirely variable and traceable to the products involved. Further information follows. If Processed FurtherProductPounds ProducedPer-PoundSales Price Sales ValueSeparable CostA20,000$12 $350,000 $90,000 B30,000 8 300,000 60,000 If the joint costs are allocated based on the physical-units method, the amount of joint cost assigned to product A would be:
A. $100,000.
B. $104,000.
C. $80,000.
D. $120,000.
E. None of the answers is correct.
Answer: C
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