Question: 1. A company produces three products, B1, B2, and B3. The joint cost incurred for the current month for these products is $180,000. The following data relate to this month's production:
Product Units Produced Unit Sales Value
B1 96,000 $3.00
B2 64,000 6.00
B3 32,000 9.00
The amount of joint cost allocated to product B3 using the value basis allocation is (a) $30,000, (b) $54,000, or (c) $90,000.
2. Why are many companies divided into departments?