LO 4-4: Allocate joint costs to joint products.

The Silver Center produced cups and platters. The Center purchases silver and other metals that are processed into silver alloy used to make platters and cups. The Center incurred 40,000 of materials cost and 44,000 of labor cost to produce the silver alloy. Platters are made first and the residual alloy is remixed into a lower grade silver plated material used to make the cups. Remixing cost amounts to 2,000. The recent batch contained 4,000 platters and 1,000 cups. The Center sold the platters for $100,000 and the cups for $12,000. Based on this information, the total amount of joint cost is?

$84,000. The remixing cost occurs after the split-off, and is therefore not a joint cost.

Joint costs occur: A) before the split-off point B) after the split-off point

A) before the split-off point