Wren Pork Company uses the value basis of allocating joint costs in its production of pork products. Relevant information for the current period follows:Product Pounds Price/lb. Loin chops 3,000 $5.00 Ground 10,000 2.00 Ribs 4,000 4.75 Bacon 6,000 3.50 The total joint cost for the current period was $43,000. How much of this cost should Wren Pork allocate to Loin chops? Multiple Choicea. $0. b. $5,909. c. $8,600. d. $10,750. e. $43,000.

Question

Business

Brooke Ho

25 February, 11:59

Wren Pork Company uses the value basis of allocating joint costs in its production of pork products. Relevant information for the current period follows:Product Pounds Price/lb. Loin chops 3,000 $5.00 Ground 10,000 2.00 Ribs 4,000 4.75 Bacon 6,000 3.50 The total joint cost for the current period was $43,000. How much of this cost should Wren Pork allocate to Loin chops? Multiple Choicea. $0. b. $5,909. c. $8,600. d. $10,750. e. $43,000.

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Answers (1)

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Dalton Robertson · Answer 1

Option (C) is correct.

Explanation:

Cost allocate to Loin chops:-

= Total Joint Cost * [Loin Chops sales value : (Loin Chops sales value + Ground Sales value + Ribs sales value + Bacon Sales value) ]

= $43,000 * { (3,000 * 5) : [ (3,000 * 5) + (10,000 * 2) + (4,000 * 4.75) + (6,000 * 3.5) ]}

= $43,000 * [15,000 : 75,000]

= $43,000 * 0.2

= $8,600