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The East and West Railroad Company has two divisions, the East Division and the West Divis

1. The East and West Railroad Company has two divisions, the East Division and the West Division. The company recently invested $800,000 to maintain its railroad track. Pertinent data for the two divisions are as follows:

Total Miles Traveled

East Division 800,000 miles

West Division 1,200,000 miles 

What is the amount of track improvement cost that should be allocated to the West Division?

2. Joint products A and B emerge from common processing that costs $100,000 and yields 2,000 units of Product A and 1,000 units of Product B. Product A can be sold for $100 per unit. Product B can be sold for $120 per unit. How much of the joint cost will be assigned to Product A if joint costs are allocated on the basis of relative sales values?

Nov 10 2017 Read more Less More

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