1C1L TEMPO COMPANY PRODUCES THREE PRODUCTS FROM A JOINT PROCESS. THE...

184. CSO: 1C1f LOS: 1C1l

Tempo Company produces three products from a joint process. The three products are

sold after further processing as there is no market for any of the products at the split-off

point. Joint costs per batch are $315,000. Other product information is shown below.

Product A Product B Product C

Units produced per batch 20,000 30,000 50,000

Further processing and

marketing cost per unit $ .70 $3.00 $1.72

Final sales value per unit 5.00 6.00 7.00

If Tempo uses the net realizable value method of allocating joint costs, how much of the

joint costs will be allocated to each unit of Product C?

a. $2.10.

b. $2.65.

c. $3.15.

d. $3.78.