Falcon Company manufactures three products from a joint process.Joint costs for the year amounted to $300,000.The following data was available: Assume the physical-units method of allocating joint costs is used.What amount of joint costs is allocated to Product Y?
A)$30,000
B)$37,500
C)$90,000
D)$300,000

Question

Falcon Company manufactures three products from a joint process.Joint costs for the year amounted to $300,000.The following data was available:  Assume the physical-units method of allocating joint costs is used.What amount of joint costs is allocated to Product Y?
A)$30,000 
B)$37,500 
C)$90,000 
D)$300,000

Quizplus · Accepted Answer

Using the physical-units method, joint costs are allocated based on the relative number of physical units produced by each product. In this case, the total number of physical units produced is 200,000, and Product Y accounts for 45% of this total (90,000 units). Therefore, $300,000 * 45% = $90,000 is allocated to Product Y.

Falcon Company Manufactures Three Products from a Joint Process