Palen Chemical Company manufactures X-111, X-112, and X-113 from a joint process. The following information is available for the period just ended:

Required:
A. Does Palen allocate joint costs by using the physical-units method? Explain.
B. Assume that Palen does not use the physical-units method but instead allocates joint costs by using the relative-sales-value method. Find the four unknowns in the preceding table.

Question

Palen Chemical Company manufactures X-111, X-112, and X-113 from a joint process. The following information is available for the period just ended:

Required: 
A. Does Palen allocate joint costs by using the physical-units method? Explain.
B. Assume that Palen does not use the physical-units method but instead allocates joint costs by using the relative-sales-value method. Find the four unknowns in the preceding table.

Quizplus · Accepted Answer

The Answer of Palen Chemical Company manufactures X-111, X-112, and X-113 from a joint process. The following information is available for the period just ended:

Required: 
A. Does Palen allocate joint costs by using the physical-units method? Explain.
B. Assume that Palen does not use the physical-units method but instead allocates joint costs by using the relative-sales-value method. Find the four unknowns in the preceding table.

Palen Chemical Company Manufactures X-111, X-112, and X-113 from a Joint