Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Bendon Chemical Company's production process for two of its solvents can be diagrammed as follows: joint input = 15,000 gallons split-off point solvent A
Bendon Chemical Company's production process for two of its solvents can be diagrammed as follows: joint input = 15,000 gallons split-off point solvent A 9,000 gallons = solvent B 6,000 gallons The cost of the joint input, including processing costs before the split-off point, is $330,000. Solvent A can be sold at split off for $30 per gallon and solvent B for $45 per gallon. Requirements 1. Allocate the $330,000 joint cost to solvents A and B by the physical-units method. 2. Allocate the $330,000 joint cost to solvents A and B by the relative-sales-value method. Requirement 1. Allocate the $330,000 joint cost to solvents A and B by the physical-units method. (Round the weighting to two decimal places.) Allocation of Gallons Weighting joint costs Solvent A Solvent B
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started