Question

# Physical Units Method Alomar Company manufactures four products from a joint production process: barlon, selene, plicene,...

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 \$63,228 Direct labor 35,957 Overhead 28,273

At the split-off point, a batch yields 1,174 barlon, 2,699 selene, 3,169 plicene, and 4,694 corsol. All products are sold at the split-off point: barlon sells for \$15 per unit, selene sells for \$21 per unit, plicene sells for \$28 per unit, and corsol sells for \$32 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 Total \$

2. Suppose that the products are weighted as shown below:

 Barlon 1.3 Selene 2 Plicene 1.6 Corsol 2.4

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 Total \$

Total joint cost

 Direct material 63,228 Direct labor 35,957 Overhead 28,273 Total 127,458

1. Allocation Of Joint Cost Using Physical Unit Method

 Product Units [A] Weight [B = A/11,736] Joint Cost [C = B x 127,458] Barlon 1174 0.10 12,745.80 Selene 2699 0.23 29,315.34 Plicene 3169 0.27 34,413.66 Corsol 4694 0.40 50,983.20 Total 11,736 \$127,458

2. Joint Cost As Per Given Weight

 Product Given weight [A] Joint Cost [B = A/ 7.30 x 127,458 Barlon 1.3 22,698 Selene 2.0 34,920 Plicene 1.6 27,936 Corsol 2.4 41,904 Total 7.3 \$127,458