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Sales-Value-at-Split-off Method Alomar Company manufactures four products from a joint production process: barlon, selene, plicene, and corsol. The joint costs for one batch are as
Sales-Value-at-Split-off 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 $69,000 Direct labor 31,000 Overhead 26,000 At the split-off point, a batch yields 1,100 barlon, 2,900 selene, 2,800 plicene, and 3,500 corsol. All products are sold at the split-off point: barlon sells for $16 per unit, selene sells for $20 per unit, plicene sells for $29 per unit, and corsol sells for $35 per unit. Required: Allocate the joint costs using the sales-value-at-split-off method. If required, round allocation rates to four decimal places and round the final allocations to the nearest dollar. Allocated Joint Cost Barlon Selene Plicene Corsol Total II-I-TI-I--I-ELL - - 11 ------ -------- L-1..-L- Net Realizable Value Method, Decision to Sell at Split-off or Process Further Pacheco, Inc., produces two products, overs and unders, in a single process. The joint costs of this process were $50,000, and 15,000 units of overs and 36,000 units of unders were produced. Separable processing costs beyond the split-off point were as follows: overs, $20,000; unders, $23,040. Overs sell for $2.00 per unit; unders sell for $3.14 per unit. Required: 1. Allocate the $50,000 joint costs using the estimated net realizable value method. Allocated Joint Cost Overs Unders 2. Suppose that overs could be sold at the split-off point for $1.80 per unit. Should Pacheco sell overs at split-off or process them further? Overs be processed further as there will be s profit if sold at split-off
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