Bond Corporation,which manufactures products W,X,Y,and Z through a joint process costing $18,000,has the following data for the current year: $\begin{array}{rrr}
&&\text { Total Sales Value }\
\text { Product } & \text { Units Produced } &\text { at Split-Off }\
W & 10,000 & \$ 5,000 \
X & 6,000 & 2,500 \
Y & 16,000 & 3,000 \
Z & 8,000 & 4.500
\end{array}$ What is the amount of joint costs assigned to product W using the physical units method?

Question

Quizplus · Accepted Answer

The physical units method allocates joint costs based on the proportion of units produced. Total units produced = 10,000 + 6,000 + 16,000 + 8,000 = 40,000. Product W's proportion = 10,000 / 40,000 = 0.25. Joint costs assigned to W = 0.25 * $18,000 = $4,500.

Bond Corporation,which Manufactures Products W,X,Y,and Z Through a Joint Process