1. Alpha Chemicals Ltd.

Scenario: Joint Cost Allocation

Product Details:

• Product A:
  • Sales Value at Split-off: $120,000
  • Separate Costs after Split-off: $80,000
  • Joint Costs Incurred: $40,000

• Product B:
  • Sales Value at Split-off: $150,000
  • Separate Costs after Split-off: $90,000
  • Joint Costs Incurred: $50,000

Requirements:

• Allocate joint costs between Product A and Product B using the sales value at split-off method. Provide a table showing the allocation of joint costs and resulting costs after split-off for each product.