Question
Hill Chemical, Inc., processes pine rosin into three products: turpentine, paint thinner, and spot remover. During May, the joint costs of processing were $180,000. Production
Hill Chemical, Inc., processes pine rosin into three products: turpentine, paint thinner, and spot remover. During May, the joint costs of processing were $180,000. Production quantity and sales value and cost information per liter for the month is as follows:
| Product | Liters Produced | Sales Value at Split off | Separable Costs/liter | Final Selling Price |
| Turpentine | 16,500 | $9.00 | $1.20 | $12.00 |
| Paint thinner | 16,000 | $7.00 | $0.80 | $7.50 |
| Spot remover | 7,500 | $7.60 | $0.90 | $9.00 |
Sales value at split off point is not available. Using Net realizable value, what is the total cost per liter of each product.
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Managerial Accounting Tools for business decision making
Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso
6th Edition
978-0470477144, 1118096894, 9781118214657, 470477148, 111821465X, 978-1118096895
