1. Total units = 70000+30000 = 100000
Cost of Sigma = Total joint cost X Sigma units / Total units
= 400000 X 700000/100000
= $280,000
Answer: c
2. Sales value of Theta = SP per unit X Units = 7 X 30000 = 210000
Sales value of Sigma = SP per unit X Units = 9 X 70000 = 630000
Total sales value = 210000 +630000 = 840000
Cost of Theta = Total joint cost X Sales value of Theta/ Total sales value
= 400000 X 210000/840000
= $100,000
Answer: a
3. Cost of Theta = Total joint cost X Theta units / Total units
= Total joint cost X Theta units / Total units
= 400000 X 30000 / 100000
= $ 120,000
Answer: b
Additional cost are not joint cost thus it is not taken into consideration.
4. Cost of Theta = Total joint cost X Net Theta units / Total units
= 400000 X 20000 / 100000
= $ 80,000
Answer: d
As per policy, I can solve one unique question or first four sub parts of the same question.
CHAPTER 15 QUIZ The following data apply to questions 1-5. Beta Company manufactures two products out...
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