Cost Accounting/Managerial Accounting Homework

Physical Units Method

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 $69,480 Direct labor 34,196 Overhead 26,170 At the split-off point, a batch yields 1,754 barlon, 2,270 selene, 2,477 plicene, and 3,819 corsol. All products are sold at the split-off point: barlon sells for $13 per unit, selene sells for $21 per unit, plicene sells for $24 per unit, and corsol sells for $37 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 Total2. Suppose that the products are weighted as shown below: Barlon 1.3 Selene 1.8 Plicene 1.2 Corsol 2.6 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 TotalAllocate 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 $ 24,464 X Selene 33,873 X Plicene 22,582 X Corsol 48,927 X Total $129,846 Feedback Check My Work 1. The physical units method allocates the same proportion of joint cost to each product as the underlying proportion of units. 2. Once the weight factors are applied, the physical units can be applied to obtain the percentage of weighted cases for each grade. These percentages are then multiplied by the joint cost to yield the allocated joint cost.A B C D E F 1059 Allocation of costs using weighted-average method 1060 Product Weight Yield Weighted yield Percentage Allocated cost 1061 Barlon =1.3 =1754 =B1061*C1061 =D1061/$D$1065 =129846*E1061 1062 Selene =1.8 =2270 =B1062*C1062 =D1062/$D$1065 =129846*E1062 1063 Plicene =1.2 =2477 =B1063*C1063 =D1063/SD$1065 =129846*E1063 1064 Corsol =2.6 =3819 =B1064*C1064 =D1064/$D$1065 =129846*E1064 1065 Total -SUM(D1061:D1064) =SUM(F1061:F1064)A B C D E F 1059 Allocation of costs using weighted-average method 1060 Product Weight Yield Weighted yield Percentage Allocated cost 1061 Barlon 1.3 1.754 2.280 11 8341% 15.366 1062 Selene 1.8 2.270 4.086 21.2061% 27,535 1063 Plicene 1.2 2.477 2.972 15.4266% 20.031 1064 Corsol 2.6 3.819 9.929 51.5331% 66.914 1065 Total 19,268 S 1,29,846