Marin Products produces three products DBB-1, DBB-2, and DBB-3 from a joint process. Each product may
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Marin Products produces three products — DBB-1, DBB-2, and DBB-3 from a joint process. Each product may be sold at the split-off point or processed further. Additional processing requires no special facilities, and production costs of further processing are entirely variable and traceable to the products involved. Key information about Marin's production, sales, and costs follow.
DBB-1 | DBB-2 | DBB-3 | Total | |||||||||
Units Sold | 11,000 | 17,000 | 24,000 | 52,000 | ||||||||
Price (after addt’l processing) | $ | 10 | $ | 25 | $ | 30 | ||||||
Separable Processing cost | $ | 282,000 | $ | 114,000 | $ | 169,000 | $ | 565,000 | ||||
Units Produced | 11,000 | 17,000 | 24,000 | 52,000 | ||||||||
Total Joint Cost | $ | 3,200,000 | ||||||||||
Sales Price at Split-off | $ | 20 | $ | 30 | $ | 50 | ||||||
The amount of joint costs allocated to product DBB-1 using the physical measure method is (calculate all ratios and percentages to 2 decimal places, for example, 33.33%, and round all dollar amounts to the nearest whole dollar):
Related Book For
Management Accounting
ISBN: 978-0132570848
6th Canadian edition
Authors: Charles T. Horngren, Gary L. Sundem, William O. Stratton, Phillip Beaulieu
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