Brite Surface Company Brite Surface Company produces four floor cleaners from the same process: C, D, E, and G. Joint product costs are $9,000. (Round all answers to the nearest dollar.)
If Brite Surface sells the products after further processing, the following disposal costs will be incurred: C, $2.50; D, $1.00; E, $3.50; G, $6.00.
Refer to Brite Surface Company. Using a physical measurement method, what amount of joint processing cost is allocated to Product E?

Question

Brite Surface Company Brite Surface Company produces four floor cleaners from the same process: C, D, E, and G. Joint product costs are $9,000. (Round all answers to the nearest dollar.)
 If Brite Surface sells the products after further processing, the following disposal costs will be incurred: C, $2.50; D, $1.00; E, $3.50; G, $6.00.
Refer to Brite Surface Company. Using a physical measurement method, what amount of joint processing cost is allocated to Product E?

Quizplus · Accepted Answer

To allocate joint costs using physical measurement method, the joint cost is divided by the total physical units of all products. Then, the unit cost is multiplied by the physical units of each product to allocate the joint costs.

Joint cost per unit = $9,000 / (C units + D units + E units + G units)

We are not given the physical units of each product. Therefore, we cannot calculate the joint cost per unit using this method and cannot allocate the joint costs to each product.

Brite Surface Company Brite Surface Company Produces Four Floor Cleaners