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Alpine Labs produces a drug used for the treatment of arthritis. The drug is produced in batches. (Click the icon to view additional information.)
Alpine Labs produces a drug used for the treatment of arthritis. The drug is produced in batches. (Click the icon to view additional information.) In March, Alpine, which had no opening inventory, processed one batch of chemicals. It sold 2,200 gallons of product for human use and 350 gallons of the veterinarian product. Alpine uses the net realizable value method for allocating joint production costs. Read the requirements. Requirement 1. How much in joint costs does Alpine allocate to each product? (Do not round intermediary calculations. Only round the amount you input in the cell to the nearest dollar.) Joint costs allocated to human product Joint costs allocated to veterinarian product More info - Chemicals costing $52,000 are mixed and heated, then a unique separation process then extracts the drug from the mixture. A batch yields a total of 3,000 gallons of the chemicals. The first 2,400 gallons are sold for human use while the last 600 gallons, which contain impurities, are sold to veterinarians. The costs of mixing, heating, and extracting the drug amount to $272,000 per batch. The output sold for human use is pasteurized at a total cost of $136,800 and is sold for $550 per gallon. The product sold to veterinarians is irradiated at a cost of $24 per gallon and is sold for $440 per gallon.
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