Expo manufacturing produces four different drinks. The joint process incurs costs of $250,000. The following information is related to the four products. Using the physical quantities methods of allocating joint costs, how much joint costs would be allocated to Buggy? (Round the nearest whole dollar)
A)$25,000.
B)$53,305.
C)$88,652.
D)$100,000.

Question

Expo manufacturing produces four different drinks. The joint process incurs costs of $250,000. The following information is related to the four products.  Using the physical quantities methods of allocating joint costs, how much joint costs would be allocated to Buggy? (Round the nearest whole dollar)
A)$25,000. 
B)$53,305. 
C)$88,652. 
D)$100,000.

Quizplus · Accepted Answer

8 + 12 + 16 + 24 = 60 total oz
24 ÷ 60 x $250,000 = $100,000. 
beat oz + grass oz + loc oz + bug oz = total oz 
bug oz ÷ total oz x joint costs

Expo Manufacturing Produces Four Different Drinks