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MCS,PHD
Argosy University/ Phoniex University/
Nov-2005 - Oct-2011
Professor
Phoniex University
Oct-2001 - Nov-2016
Physical Quantities Method
The following questions relate to Kyle Company, which manufactures products KA, KB, and KC from a joint process. Joint product costs were $126,000. Additional information follows:
|
 |
 |
 |
If Processed Further |
|
|
 |
Units |
Sales Value |
Sales |
Additional |
|
Product |
Produced |
at Split-Off |
Values |
Costs |
|
KA |
56,000 |
$160,000 |
$220,000 |
$36,000 |
|
KB |
40,000 |
140,000 |
180,000 |
28,000 |
|
KC |
16,000 |
100,000 |
160,000 |
20,000 |
Required
a. Assuming that joint product costs are allocated using the physical quantities (units produced) method, what was the total cost of product KA (including $36,000 if processed further)?
b. Assuming that joint product costs are allocated using the sales value at split-off (net realizable value method), what was the total cost of product KB (including the $28,000 if processed further)?
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