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Category > Accounting Posted 30 Jul 2017 My Price 10.00

Alomar Company

Exercise 7.25 (Algorithmic)
Physical Units Method

Alomar Company manufactures four products from a joint production process: barlon, selene, plicene, and corsol. The joint costs for one batch are as follows:

Direct materials $67,338
Direct labor 33,068
Overhead 27,220

At the split-off point, a batch yields 2,976 barlon, 3,274 selene, 3,423 plicene, and 5,209 corsol. All products are sold at the split-off point: barlon sells for $17 per unit, selene sells for $18 per unit, plicene sells for $25 per unit, and corsol sells for $35 per unit.

Required:

1. Allocate the joint costs using the physical units method. If required, round your percentage allocation to four decimal places and round allocated costs to the nearest dollar. Note: The total of the allocated cost does not equal to the one provided in the question data due to rounding error.

  Allocated Joint Cost
 
Barlon $  
Selene    
Plicene    
Corsol    
Total $  

2. Suppose that the products are weighted as shown below:

Barlon 1.4
Selene 2.2
Plicene 1.2
Corsol 2.4

Allocate the joint costs using the weighted average method. If required, round your percentage allocation to four decimal places and round allocated costs to the nearest dollar.

  Allocated Joint Cost
 
Barlon $  
Selene    
Plicene    
Corsol    
Total $

 

Answers

Maurice Tutor
(5)
Status NEW Posted 30 Jul 2017 01:07 PM My Price 10.00

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