Question Details
Exercise 7.25 (Algorithmic)
Physical Units 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:
At the split-off point, a batch yields 2,976 barlon, 3,274
selene, 3,423 plicene, and 5,209 corsol. All products are sold at
the split-off point: barlon sells for $17 per unit, selene sells
for $18 per unit, plicene sells for $25 per unit, and corsol sells
for $35 per unit.
Required:
1. Allocate the joint costs using the physical
units method. If required, round your percentage allocation to four
decimal places and round allocated costs to the nearest dollar.
Note: The total of the allocated cost does not equal to the one
provided in the question data due to rounding error.
2. Suppose that the products are weighted as
shown below:
Allocate the joint costs using the weighted average method. If
required, round your percentage allocation to four decimal places
and round allocated costs to the nearest dollar.
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DATE ANSWEREDDec 08, 2020
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