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The output of one of Pantoja Chemical Company's production processes is two solvents, Rexon and Texon. The two products cannot be separated until $420,000 of
The output of one of Pantoja Chemical Company's production processes is two solvents, Rexon and Texon. The two products cannot be separated until $420,000 of processing costs have been incurred. At that point there are 21,900 gallons of Rexon that can be sold for $16.50 per gallon and 8,100 gallons of Texon that can be sold for $36.50 per gallon. Requirements 1. Allocate the $420,000 joint cost to Rexon and Texon by the physical-units method. 2. Allocate the $420,000 joint cost to Rexon and Texon by the relative sales-value method. Requirement 1. Allocate the $420,000 joint cost to Rexon and Texon by the physical-units method. (Round the weighting to two decimal places.) Allocation of joint costs Gallons Weighting Rexon Texon Requirement 2. Allocate the $420,000 joint cost to Rexon and Texon by the relative-sales-value method. (Round the weighting to two decimal places.) Relative sales value at split-on Allocation of joint costs Weighting Rexon Texon
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