Question
Alomar Company manufactures four products from a joint production process: barlon, selene, plicene, and corsol. The joint costs for one batch are as follows: Direct
Alomar Company manufactures four products from a joint production process: barlon, selene, plicene, and corsol. The joint costs for one batch are as follows:
Direct materials $63,000
Direct labor 35,000
Overhead 26,000
At the split-off point, a batch yields 1,300 barlon, 2,900 selene, 2,800 plicene, and 3,700 corsol. All products are sold at the split-off point: barlon sells for $18 per unit, selene sells for $20 per unit, plicene sells for $27 per unit, and corsol sells for $35 per unit.
Required:
Allocate the joint costs using the sales-value-at-split-off method. If required, round allocation rates to four decimal places and round the final allocations to the nearest dollar.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
To allocate the joint costs using the salesvalueatsplitoff method we need to determine the allocation rates for each product based on their relative s...Get Instant Access to Expert-Tailored Solutions
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Step: 2
Step: 3
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