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Custom Carvings Company jointly produces wood chips and sawdust used in agriculture. The wood chips and sawdust are actually by - products of the company
Custom Carvings Company jointly produces wood chips and sawdust used in agriculture. The wood chips and sawdust are actually byproducts of the companys core operations, but Custom Carvings accounts for them just like normally produced goods because of their large volumes. One jointly produced batch yields cubic yards of wood chips and cubic yards of sawdust, and the estimated cost per batch is $ However, the joint production of each good is not equally weighted. Given management estimates for how long it takes to make sawdust vs wood chips, a weight factor of is used for wood chips in the joint production process, and a weight factor of is used for sawdust.
Given this information, allocate the joint costs of production to each product using the weighted average method.
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