Joint Cost AllocationMarket Value at Split-off Method

Man OFort Inc. produces two different styles of door handles, standard and curved. The door handles go through a joint production molding process costing $29,000 per batch and producing 1,600 standard door handles and 800 curved door handles at the split-off point. Both door handles undergo additional production processes after the split-off point, but could be sold at that point: the standard style for $6 per door handle and the curved style for $3 per door handle.

Determine the amount of joint production costs allocated to each style of door handle using the market value at split-off method.

Joint ProductAllocation

Standard door handle$

Curved door handle

Totals$