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Ibrahim Company produces three products A, B, and C. During the year, the joint costs of processing the three products were $480,000. Production and sales
Ibrahim Company produces three products A, B, and C. During the year, the joint costs of processing the three products were $480,000.
Production and sales value information were as follows:
Sales Value
Product Units at Split-Off Separable Costs Selling Price
A 500,000 $13 per unit $6.00 per unit $40 per unit
B 300,000 $12 per unit $4.00 per unit $37 per unit
C 200,000 $8 per unit $3.00 per unit $28 per unit
Allocate the joint costs using the physical output method.
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