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Cornerstones of Cost Accounting 1st Edition by Don Hansen,Maryanne Mowen
Edition 1ISBN: 978-0538736787Cornerstones of Cost Accounting 1st Edition by Don Hansen,Maryanne Mowen
Edition 1ISBN: 978-0538736787 Exercise 3
PHYSICAL UNITS METHOD
Alomar Company manufactures four products from a joint production process: colgene, delgene, prosone, and freol. The joint costs for one batch are as follows:
At the split-off point, a batch yields 1,200 colgene, 1,800 delgene, 3,000 prosone, and 3,600 freol. All products are sold at the split-off point: colgene sells for $60 per unit, delgene sells for $75 per unit, prosone sells for $20 per unit, and freol sells for $28.50 per unit.
Carry out all percent calculations to four significant digits.
Required:
1. Allocate the joint costs using the physical units method.
2. Suppose that the products are weighted as follows:
Allocate the joint costs using the weighted average method.
Alomar Company manufactures four products from a joint production process: colgene, delgene, prosone, and freol. The joint costs for one batch are as follows:
At the split-off point, a batch yields 1,200 colgene, 1,800 delgene, 3,000 prosone, and 3,600 freol. All products are sold at the split-off point: colgene sells for $60 per unit, delgene sells for $75 per unit, prosone sells for $20 per unit, and freol sells for $28.50 per unit.
Carry out all percent calculations to four significant digits.
Required:
1. Allocate the joint costs using the physical units method.
2. Suppose that the products are weighted as follows:
Allocate the joint costs using the weighted average method.
Explanation
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1.
The allocation of joint cos...
Cornerstones of Cost Accounting 1st Edition by Don Hansen,Maryanne Mowen
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