Question
Lafayette Company manufactures two products out of a joint process: Compod and Ultrasene. The joint costs incurred are $900,000 for a standard production run that
Lafayette Company manufactures two products out of a joint process: Compod and Ultrasene. The joint costs incurred are $900,000 for a standard production run that generates 135,000 gallons of Compod and 95,000 gallons of Ultrasene. Compod sells for $13.50 per gallon while Ultrasene sells for $13.50 per gallon.
Problem 17-32 Part 3
3. Suppose the following additional processing costs are required beyond the split-off point in order to obtain Compod and Ultrasene: $1.80 per gallon for Compod and $4.80 per gallon for Ultrasene. a. Calculate the amount of joint cost of each production run allocated to Ultrasene on a physical-units basis. b. Calculate the amount of joint cost of each production run allocated to Compod on a net-realizable-value basis. (Do not round intermediate calculations. Round your final answer to the nearest dollar amount.) Joint cost allocated to Compod?
Joint cost allocated to Ultrasene?
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