Doberman Company Manufactures Three Products from a Joint Process Assuming the Relative- Sales- Value Method of Allocating Joint Costs

Doberman Company manufactures three products from a joint process. Joint costs for the year amounted to $250,000. The following data are also available: $$\begin{array}{l}&&\text { Sales } V \text { alue at }\\\text { Product } & \text { Units Produced } & \text { Split- off } \\\mathrm{X} & \mathbf{5 , 0 0 0} & \$ 70,000 \\\mathrm{Y} & 3,000 & \$ 30,000 \\\mathrm{Z} & 2,000 & \$ 100,000\end{array}$$ Assuming the relative- sales- value method of allocating joint costs, the amount of joint costs allocated to product Y would be:

A) $37,500
B) $250,000
C) $30,000
D) $75,000

Correct Answer:

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