UNIT 8 $6,860 ($9,800 X .70) COST OF NEXT 7 UNITS = (8 X $6,860...

182. Correct answer a. The total costs for producing Giant are $5,600 calculated as follows.

Joint cost allocation: Giant Mini Total

Sales value $10,200 $800 $11,000

Less further processing 1,000 -- 1,000

Net realizable value $ 9,200 $800 $10,000

% allocation 92% 8%

Giant joint cost: $5,000 x 92% $4,600

Cost to process further 1,000

Total cost $5,600