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: $\begin{array}{lrr}
&&\text { Sales Value }\
\text { Product }& \text { Units Produced } & \text { at Split-Off }\
W & 10,000 & \$ 5,000 \
X & 6,000 & 2,500 \
Y & 16,000 & 3,000 \
Z & 8,000 & 4,500
\end{array}$
- What is the amount of joint costs assigned to Product X using the sales-value-at-split-off method?

Question

Quizplus · Accepted Answer

The sales-value-at-split-off method allocates joint costs based on the proportion of each product's sales value at split-off to the total sales value. Product X's sales value is $2,500. The total sales value is $5,000 + $2,500 + $3,000 + $4,500 = $15,000. The proportion for Product X is $2,500 / $15,000 = 1/6. Therefore, the joint cost assigned to Product X is 1/6 of $18,000, which is $3,000.

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