E6-12 Page 354

Making a journal entryjoint products Adirondack Bat Co. processes rough timber to obtain three grades of lumber, A, B, and C that are then made into baseball bats. The company allocates joint costs to the joint products on the basis of the sales value at the split-off point. During the month of May, Adirondack incurred total joint production costs of $300,000 in producing the following:

Grade Thousand Board Feet Sales Value per Board Ft A 200 $200

B 300 $100

C 500 $150 What would be the allocation of the joint costs FOR GRADE A if the company were to use the physical measure method?

What would be the allocation of the joint costs FOR GRADE B if the company were to use the physical measure method?