Pagilla Company manufactures four productsandol, incol, ordol, and exsolfrom a joint production process. The joint costs for
Question:
Pagilla Company manufactures four products—andol, incol, ordol, and exsol—from a joint production process. The joint costs for one batch are as follows:
Direct materials .......$56,300
Direct labor ........ 28,000
Overhead ......... 15,700
At the split-off point, a batch yields 1,000 andol, 1,500 incol, 2,500 ordol, and 3,000 exsol. All products are sold at the split-off point: Andol sells for $20 per unit; incol sells for $75 per unit; ordol sells for $64 per unit, and exsol sells for $22.50 per unit.
Required:
1. Allocate the joint costs using the physical units method.
2. Suppose that the products are weighted as follows:
Andol .......3.0
Incol .........2.0
Ordol ........0.4
Exsol ........1.0
Allocate the joint costs using the weighted average method.
Step by Step Answer:
Cost Management Accounting And Control
ISBN: 101
6th Edition
Authors: Don R. Hansen, Maryanne M. Mowen, Liming Guan