Deli Products produces two products,X and Y,in a single process.In the current year,the joint costs of this process were $25,000.In addition,4,000 units of X and 6,000 units of Y were produced.Separable processing costs beyond the split-off point were X - $10,000; Y - $20,000.X sells for $10.00 per unit; Y sells for $7.50 per unit.
-What amount of joint costs will be allocated to Product X using the physical units method?

Question

Deli Products produces two products,X and Y,in a single process.In the current year,the joint costs of this process were $25,000.In addition,4,000 units of X and 6,000 units of Y were produced.Separable processing costs beyond the split-off point were X - $10,000; Y - $20,000.X sells for $10.00 per unit; Y sells for $7.50 per unit. 
-What amount of joint costs will be allocated to Product X using the physical units method?

Quizplus · Accepted Answer

The physical units method allocates joint costs based on the proportion of units produced. Product X has 4,000 units, and Product Y has 6,000 units, totaling 10,000 units. The proportion for X is 4,000/10,000 = 0.4. Therefore, the joint costs allocated to X are 0.4 * $25,000 = $10,000.

Deli Products Produces Two Products,X and Y,in a Single Process