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Vreeland, Inc., manufactures products X, Y, and Z from a common process. Joint costs were $65,000. Additional information is as follows: If Processed Further Units
Vreeland, Inc., manufactures products X, Y, and Z from a common process. Joint costs were $65,000. Additional information is as follows: |
If Processed Further | ||||
Units | Sales Value at | Sales | Additional | |
Product | Produced | Split-off | Value | Costs |
X | 6,500 | $ 45,000 | $ 62,500 | $ 4,500 |
Y | 4,500 | 40,000 | 52,500 | 6,750 |
Z | 2,500 | 30,000 | 37,500 | 8,500 |
13,500 | $ 115,000 | $ 152,500 | $ 19,750 | |
Assuming that joint production costs are allocated using the physical quantities method (units produced), what were the costs allocated to Product X? |
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