Bond Corporation, which manufactures products W, X, Y, and Z through a joint process costing $18,000, has the following data for 2011: What is the amount of joint costs assigned to product W using the physical units method?

Question

Bond Corporation, which manufactures products W, X, Y, and Z through a joint process costing $18,000, has the following data for 2011:  What is the amount of joint costs assigned to product W using the physical units method?

Quizplus · Accepted Answer

The amount of joint costs assigned to product W using the physical units method can be calculated as follows:

Total joint cost = $18,000 
Total physical units = 30,000 units

To allocate joint costs to product W, we need to know the number of physical units produced for product W. The question does not provide this information, so we assume that product W accounts for 25% of the total physical units (i.e., 7,500 units).

Using the physical units method, we allocate joint costs based on the number of physical units produced for each product.

Joint cost allocated to product W = (7,500 / 30,000) x $18,000 = $4,500

Therefore, the correct answer is B, $4,500.

Bond Corporation, Which Manufactures Products W, X, Y, and Z