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 B (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 B (round to the nearest dollar)?

Quizplus · Accepted Answer

The physical measurement method allocates joint costs based on a physical measure, such as weight, volume, or units. In this case, the total pounds of products A, B, and C are 800, 1,100, and 1,500, respectively, totaling 3,400 pounds. The joint costs of $2,100 should be allocated based on the proportion of each product's weight to the total weight. For Product B, this is 1,100 pounds / 3,400 pounds = 32.35%. Therefore, the allocation to Product B is 32.35% of $2,100, which is approximately $679 (rounded to the nearest dollar).

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