Alpha Company makes three joint products: products A, B, and C. For each batch, the materials cost is $8,000, direct labor cost is $2,000, and manufacturing overhead is $5,000. From each batch, the company makes 2,000 pounds of A, 1,200 pounds of B, and 800 pounds of C.
(a) What are the total joint costs for each batch of the products?
(b) Allocate the joint costs to each of the three products.
(c) Determine the cost per pound for product A.
a. What are the total joint costs for each batch of the products?
Material Cost 8,000
Direct Labor 2,000
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