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 | $68,874 |
Direct labor | 33,698 |
Overhead | 27,535 |
At the split-off point, a batch yields 1,581 barlon, 3,450 selene, 3,737 plicene, and 5,606 corsol. All products are sold at the split-off point: barlon sells for $15 per unit, selene sells for $20 per unit, plicene sells for $27 per unit, and corsol sells for $33 per unit.
Required:
1. Allocate the joint costs using the physical units method. If required, round your percentage allocation to four decimal places and round allocated costs to the nearest dollar. Note: The total of the allocated cost does not equal to the one provided in the question data due to rounding error.
Allocated Joint Cost | ||
Barlon | ____ | |
Selene | ____ | |
Plicene | ____ | |
Corsol | ____ | |
Total | ____ |
2. Suppose that the products are weighted as shown below:
Barlon | 1.0 |
Selene | 2.2 |
Plicene | 1.4 |
Corsol | 2.7 |
Allocate the joint costs using the weighted average method. If required, round your percentage allocation to four decimal places and round allocated costs to the nearest dollar.
Allocated Joint Cost | ||
Barlon | ____ | |
Selene | ____ | |
Plicene | ____ | |
Corsol | ____ | |
Total | ____ |
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