Question 7.2

(Total: 12 marks)

Chemical X, Inc. processes pine rosin into three products; turpentine, paint thinner, and spot remover. During June the joint costs of processing were $280,000. Production and sales value information for the month were as follows:

Product	Units Produced	Sales Value at Splitoff Point
Turpentine	3,000 litres	$30,000
Paint thinner	3,000 litres	25,000
Spot remover	1,500 litres	12,500

Required:

1. Determine the amount of joint cost allocated to each product if the physical measure method is used.