Question
Man OFort Inc. produces two different styles of door handles, standard and curved. The door handles go through a joint production molding process costing $30,000
Man OFort Inc. produces two different styles of door handles, standard and curved. The door handles go through a joint production molding process costing $30,000 per batch and producing 1,800 standard door handles and 900 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 Product. Allocation
Standard door handle. $
Curved door handle $
Totals
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