Question

Agnew Chemical Company makes three products, B7, K6, and X9, which are joint products from the same materials. In a standard batch of 150,000 pounds of raw materials, the company generates 35,000 pounds of B7, 75,000 pounds of K6, and 40,000 pounds of X9. A standard batch costs $600,000 to produce. The sales prices per pound are $6, $10, and $16 for B7, K6, and X9, respectively.

Required
a. Allocate the joint product cost among the three final products using weight as the allocation base.
b. Allocate the joint product cost among the three final products using market value as the allocation base. Round your figures to 3 decimal points.



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  • CreatedFebruary 07, 2014
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