Baker Company Baker Company produces three products: A,B,and C from the same process.Joint costs for this production run are $2,100.

Pounds Sales price per lb. at split-off Disposal cost per lb. at split-off Further processing per pound Final sales price per pound

A 800 $6.50 $3.00 $2.00 $ 7.50

B 1,100 8.25 4.20 3.00 10.00

C 1,500 8.00 4.00 3.50 10.50

If the products are processed further,Baker Company will incur the following disposal costs upon sale: A,$3.00;B,$2.00;and C,$1.00. Refer to Baker Company.Using a physical measurement method,what amount of joint processing cost is allocated to Product A (round to the nearest dollar)?

Question

Baker Company Baker Company produces three products: A,B,and C from the same process.Joint costs for this production run are $2,100.

	Pounds	Sales price per lb. at split-off	Disposal cost per lb. at split-off	Further processing per pound	Final sales price per pound
A	800	$6.50	$3.00	$2.00	$ 7.50
B	1,100	8.25	4.20	3.00	10.00
C	1,500	8.00	4.00	3.50	10.50

If the products are processed further,Baker Company will incur the following disposal costs upon sale: A,$3.00;B,$2.00;and C,$1.00. Refer to Baker Company.Using a physical measurement method,what amount of joint processing cost is allocated to Product A (round to the nearest dollar)?

Quizplus · Accepted Answer

The physical measurement method allocates joint costs based on the physical units produced. Here, the total pounds produced are 800 (A) + 1,100 (B) + 1,500 (C) = 3,400 pounds. Product A's share is 800/3,400. The total joint cost is $2,100, so Product A's allocation is $2,100 * (800/3,400) = $494.12, rounded to the nearest dollar is $494.

Baker Company Baker Company Produces Three Products: A,B,and C from the Same