Question
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 | $72,000 |
Direct labor | 38,000 |
Overhead | 25,500 |
At the split-off point, a batch yields 1,600 barlon, 2,700 selene, 2,600 plicene, and 3,900 corsol. All products are sold at the split-off point: barlon sells for $16 per unit, selene sells for $21 per unit, plicene sells for $30 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 | $ |
(Note: The total of the allocated cost may not equal actual total costs to due to rounding.)
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