Joint Cost AllocationPhysical Units Method

Big Al's Inc. produces and sells various cuts of steak, including sirloin, ribeye, and T-bone. The cuts of steak are produced jointly until Big Al's cattle are butchered. Big Al estimates that, at the split-off point, 10 cows yield 99 pounds of sirloin cuts, 55 pounds of ribeye cuts, and 66 pounds of T-bone cuts.

Given Big Al's estimate that the joint cost of producing 10 cows' worth of steak cuts is $1,500, use the physical units method to allocate the joint costs of production to each product.

Joint Product	Allocation
Sirloin steak	$fill in the blank 1
Ribeye steak	fill in the blank 2
T-bone steak	fill in the blank 3
Totals	$fill in the blank 4