Answer the following question(s) using the information below.
The Oxnard Corporation processes a liquid component up to the splitoff point where two products, Mr. DirtOut and Mr. SinkClean, are produced and sold. There was no beginning inventory. The following material was collected for the month of January:
Direct materials processed: 250,000 litres (242,500 litres of good product)
The cost of purchasing 250,000 litres of direct materials and processing it up to the splitoff point to yield a total of 242,500 litres of good product was $380,000.
-When using a physical volume measure, what is the approximate amount of joint costs that will be allocated to Mr. DirtOut and Mr. SinkClean?
A) $231,116 and $148,884
B) $224,200 and $155,800
C) $227,202 and $152,798
D) $155,800 and $224,200
E) $148,884 and $231,116

Question

Answer the following question(s) using the information below.
The Oxnard Corporation processes a liquid component up to the splitoff point where two products, Mr. DirtOut and Mr. SinkClean, are produced and sold. There was no beginning inventory. The following material was collected for the month of January:
Direct materials processed: 250,000 litres (242,500 litres of good product)
  The cost of purchasing 250,000 litres of direct materials and processing it up to the splitoff point to yield a total of 242,500 litres of good product was $380,000.
-When using a physical volume measure, what is the approximate amount of joint costs that will be allocated to Mr. DirtOut and Mr. SinkClean?
A) $231,116 and $148,884 
B) $224,200 and $155,800 
C) $227,202 and $152,798 
D) $155,800 and $224,200 
E) $148,884 and $231,116

Quizplus · Accepted Answer

$380,000 × (147,500/242,500) = $231,116; $380,000 × (95,000/242,500) = $148,884

Answer the Following Question(s) Using the Information Below