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Joint Cost Allocation-Physical Units Method Blake's Blacksmith Co. produces two types of shotguns, a 12 -gauge and 209 auge. The shotguns are made through a
Joint Cost Allocation-Physical Units Method Blake's Blacksmith Co. produces two types of shotguns, a 12 -gauge and 209 auge. The shotguns are made through a joint production process that ultimately produces 30 12 -gauge shotguns and 2020 -gauge shotguns and costs a total of $4,000 per batch. After the split-off point, each type of shotgun goos through an additional crafting process before it is sold. The additional production process of the 12g guge shotgun costs $30 per gun, after which it is sold for $180 por gun. The additional production process of the 20 -gauge shotgun costs $25 per gun, after which it is sold for $150 per gun. Determine the amount of joint production costs allocated to each type of shotgun using the physical units method
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