Question
A Florida processing company, Sunshine ToGo, produces two products from a joint process: Alpha and Omega. Joint processing costs for this month's production cycle are
A Florida processing company, Sunshine ToGo, produces two products from a joint process: Alpha and Omega. Joint processing costs for this month's production cycle are $9,000.
Pounds | Sales price per pound at split-off | Disposal cost per pound at split-off | Further processing per pound | Final sale price per pound | |
Alpha | 1,800 | $7.00 | $4.50 | $1.50 | $ 8.00 |
Omega | 2,600 | 10.00 | 6.00 | 3.50 | 12.25 |
If Alpha and Omega are processed further, no disposal costs will be incurred or such costs will be borne by the buyer.
Using sales value at split-off, what amount of joint processing cost is allocated to Alpha (round to the nearest dollar)?
Using a physical measure method, what amount of joint processing cost is allocated to Omega (round to the nearest dollar)?
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