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Ramos Corporation uses the physical-units method to allocate costs among its three joint products: X, Y, and Z. The following data are available for the
Ramos Corporation uses the physical-units method to allocate costs among its three joint products: X, Y, and Z. The following data are available for the period just ended:
Joint processing cost: $910,000
Total production: 320,000 pounds
Share of joint cost allocated to X: $200,000
Share of joint cost allocated to Y: $346,000
Which of the following statements is true?
Multiple Choice
- The company would have relied on the sales value of each product when allocating joint costs to X, Y, and Z.
- Ramos produced 96,000 pounds of Z during the period.
- Ramos produced 128,000 pounds of Z during the period.
- Ramos produced 192,000 pounds of Z during the period.
- Based on the data presented, it is not possible to determine Ramos' production of Z during the period.
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