Allocate joint costs to products on the basis of physical units, relative sales price, and adjusted relative
Question:
Allocate joint costs to products on the basis of physical units, relative sales price, and adjusted relative sales price. (Objs. 1, 2, 3}.
The following information relates to the costs and production for the Condensing Department of Lawn Products Inc. for the month of July 19X9.
Product Units Produced No Bug 10,000 pounds, sales price of $1.50 per pound with no additional manufacturing costs after separation Ant Rid 10,000 pounds, sales price of $2 per pound with additional manufacturing costs of $.35 per pound after separation The total manufacturing costs applicable to No Bug and Ant Rid in this department were $21,000. Compute the amount of joint costs to be allocated to each pound of each product using the following bases:
a. Physicad units (pounds)
b. Relative sales price
c. Adjusted relative sales price LO.1
Step by Step Answer:
Cost Accounting Principles And Applications
ISBN: 9780028034287
6th Edition
Authors: Horace R. Brock, Linda Herrington