Question

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	2.0
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	$

Answer 1

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

answered by: anonymous