Question
Physical Units Method Alomar Company manufactures four products from a joint production process: barlon, selene, plicene, and corsol. The joint costs for one batch are
Physical Units Method
Alomar Company manufactures four products from a joint production process: barlon, selene, plicene, and corsol. The joint costs for one batch are as follows:
Direct materials | $66,816 |
Direct labor | 35,693 |
Overhead | 27,781 |
At the split-off point, a batch yields 1,868 barlon, 2,569 selene, 2,569 plicene, and 4,670 corsol. All products are sold at the split-off point: barlon sells for $13 per unit, selene sells for $21 per unit, plicene sells for $26 per unit, and corsol sells for $37 per unit.
Required:
1. Allocate the joint costs using the physical units method. If required, round your percentage allocation to four decimal places and round allocated costs to the nearest dollar. Note: The total of the allocated cost does not equal to the one provided in the question data due to rounding error.
Allocated Joint Cost | ||
Barlon | $ | |
Selene | ||
Plicene | ||
Corsol | ||
Total | $ |
2. Suppose that the products are weighted as shown below:
Barlon | 1.2 |
Selene | 2.2 |
Plicene | 1.2 |
Corsol | 2.7 |
Allocate the joint costs using the weighted average method. If required, round your percentage allocation to four decimal places and round allocated costs to the nearest dollar.
Allocated Joint Cost | ||
Barlon | $ | |
Selene | ||
Plicene | ||
Corsol | ||
Total | $ |
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