Alomar Company manufactures four products from a joint production process: barlon, selene, plicene, and corsol. The joint
Question:
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 | $72,000 |
Direct labor | 30,000 |
Overhead | 25,500 |
At the split-off point, a batch yields 1,200 barlon, 2,400 selene, 2,300 plicene, and 3,300 corsol. All products are sold at the split-off point: barlon sells for $15 per unit, selene sells for $22 per unit, plicene sells for $26 per unit, and corsol sells for $40 per unit.
Allocate the joint costs using the sales-value-at-split-off method. If required, round allocation rates to four decimal places and round the final allocations to the nearest dollar.
Allocated Joint Cost
Barlon:
Selene:
Plicene:
Corsol:
Total: $
(Note: The total of the allocated cost may not equal actual total costs to due to rounding.)
Cornerstones of Cost Management
ISBN: 978-1285751788
3rd edition
Authors: Don R. Hansen, Maryanne M. Mowen