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.... $67,900
Direct labor ...... 34,000
Overhead ...... 25,500
At the split-off point, a batch yields 1,400 barlon, 2,600 selene, 2,500 plicene, and 3,500 corsol. All products are sold at the split-off point: barlon sells for $15 per unit, selene sells for $20 per unit, plicene sells for $26 per unit, and corsol sells for $35 per unit. Carry out all percent calculations to four significant digits.
1. Allocate the joint costs using the physical units method.
2. Suppose that the products are weighted as shown on the next page.
Barlon ..... 1.0
Selene ..... 2.0
Plicene ..... 1.5
Corsol ..... 2.5
Allocate the joint costs using the weighted average method.

  • CreatedSeptember 01, 2015
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