Chambers Company
Chambers Company produces only two products and incurs joint processing costs that total $3,750.Products Alpha and Beta are produced in the following quantities during each month: 4,500 and 6,000 gallons,respectively.Chambers Company also runs one ad each month that advertises both products at a cost of $1,500.The selling price per gallon for the two products are $20 and $17.50,respectively.
Refer to Chambers Company.What amount of joint processing costs is allocated to each product based on gallons produced?

Question

Quizplus · Accepted Answer

The Answer of Chambers Company
Chambers Company produces only two products and incurs joint processing costs that total $3,750.Products Alpha and Beta are produced in the following quantities during each month: 4,500 and 6,000 gallons,respectively.Chambers Company also runs one ad each month that advertises both products at a cost of $1,500.The selling price per gallon for the two products are $20 and $17.50,respectively.
Refer to Chambers Company.What amount of joint processing costs is allocated to each product based on gallons produced?

Chambers Company Chambers Company Produces Only Two Products and Incurs Joint Processing