Question
The Firm incurs $3,000,000 in joint costs during the production of 4 products X, B, C, and D. Additional information includes the following: Units of
| The Firm incurs $3,000,000 in joint costs during the production of 4 products X, B, C, and D. Additional information includes the following: | |||||||
| Units of Production (lbs.) | Weighting | Market Value at Split-Off | Separable Costs | Gross Revenues | |||
| X: | 10,000 | 1.00 | 2,300,000 | 200,000 | 3,000,000 | ||
| B: | 20,000 | 1.50 | 2,800,000 | 400,000 | 4,200,000 | ||
| C: | 30,000 | 2.50 | 1,000,000 | 700,000 | 2,000,000 | ||
| D: | 6,000 | 3.00 | 40,000 | 300,000 | 720,000 | ||
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Calculate the joint cost allocation ONLY FOR PRODUCT X using the following methods:
- Physical Units ANSWER: _______________________
- Weighted Units ANSWER: _______________________
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College Accounting Ch 1-14
Authors: John Wild, Vernon Richardson, Ken Shaw
1st Edition
0073346896, 9780073346892
