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 $67,900

Direct labor 34,00

Overhead 25,500

At the split-off point, a batch yields 1,400 barlon, 2,600 selene, 2,500 plicene, and 3,500 corsol. All products are sold at the split-off point: barlon sells for $15 per unit, selene sells for $20 per unit, plicene sells for $26 per unit, and corsol sells for $35 per unit. Carry out all percent calculations to four significant digits.

Production is weighted as below.

BARLON 1.0

SELENE 2.0

PLICENE 1.5

CORSOL 2.5

allocate the joint costs using the weighted average method and allocate the joint costs using the sales-value-at-split-off method.