Chambers Company Chambers Company produces two products from a joint process: X and Z.Joint processing costs for this production cycle are $8,000.

Yards Sales price per yard at split-off Disposal cost per yard at split-off Further processing per yard Final sale price per yard

X 1,500 $6.00 $3.50 $1.00 $ 7.50

Y 2,200 9.00 5.00 3.00 11.25

If X and Z are processed further,no disposal costs will be incurred or such costs will be borne by the buyer. Refer to Chambers Company.Using a physical measure,what amount of joint processing cost is allocated to Product Z (round to the nearest dollar)? A)$4,000 B)$3,243 C)$5,500 D)$4,757

Question

Chambers Company Chambers Company produces two products from a joint process: X and Z.Joint processing costs for this production cycle are $8,000.

	Yards	Sales price per yard at split-off	Disposal cost per yard at split-off	Further processing per yard	Final sale price per yard
X	1,500	$6.00	$3.50	$1.00	$ 7.50
Y	2,200	9.00	5.00	3.00	11.25

If X and Z are processed further,no disposal costs will be incurred or such costs will be borne by the buyer. Refer to Chambers Company.Using a physical measure,what amount of joint processing cost is allocated to Product Z (round to the nearest dollar)? A)$4,000 B)$3,243 C)$5,500 D)$4,757

Quizplus · Accepted Answer

The physical measure method allocates joint costs based on the physical units produced. Product Z (incorrectly referred to, should be Y) produced 2,200 yards out of a total of 3,700 yards (1,500 for X + 2,200 for Y). The allocation for Y is (2,200 / 3,700) * $8,000 = $4,757 (rounded to the nearest dollar).

Chambers Company Chambers Company Produces Two Products from a Joint Process: X