4. Damon Corporation manufactures three products in a joint process. Product A could sell at splitoff for
Question:
4. Damon Corporation manufactures three products in a joint process. Product A could sell at splitoff for $15 per pound, Product B for $7 per pound, and Product C for $9 per pound. However, all three products are processed further, costing $5 per pound for Product A, $6 per pound for Product B, and $2 per pound for Product C. The final sales price for Product A is $25 per pound, for Product B $12 per pound, and for Product C $15 per pound. This period Damon produced 2,000 pounds of Product A, 1,000 pounds of Product B, and 2,000 pounds of Product C.
Calculate the amount of the cost allocation base to be used to allocate the joint costs for each joint product, first using sales value at splitoff as a base, then using net realizable value, then using pounds at splitoff.
Step by Step Answer:
Mastering Managerial Accounting Key Concepts Through Problem Sets
ISBN: 9781626611184
1st Edition
Authors: Christine Denison